Danish Greentech finalises wind farm buy in Spain

Sep 13, 2011 - Danish wind-farm manager Greentech Energy Systems A/S (CPH:GES) said on Monday it had completed the acquisition of a 30 MW wind farm in Tarragona, northeastern Spain, from local Gamesa (MCE:GAM).

The transaction has now been cleared by the regional administration of Catalonia.

The value of the deal, which was announced in June, was not disclosed. In July, Greentech secured project financing via a bank loan of EUR 41.9 million (USD 57.3m), corresponding to 75% of the total investment. The funding was provided by Spanish banks Banco Santander SA (MCE:SAN) and Banco de Sabadell SA (MCE:SAB).

The Tarragona wind farm comprises 15 Gamesa G90 2.0 MW turbines, 14 of which are in operation. The last turbine is expected to start operations within a year pending final authorisations. The wind farm will generate some 66.2 GWh a year, which, with the current tariffs, would result in annual revenues of about EUR 5.5 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 4.7 million.

Based on the above assumptions, Greentech expects an indicative internal rate of return (IRR) of over 16%.

The acquisition of this Spanish project is part of Greentech's strategy to diversify its geographical presence and reduce its dependence on Italy, the Danish company said.

(EUR 1.0 = USD 1.367)

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