November 8 (Renewables Now) - IDB Invest, the private sector arm of the Inter-American Development Bank (IDB), announced this week it has provided a BRL-315-million (USD 84m/EUR 73m) total credit guarantee for a 191.5-MW solar project in Brazil.
The financing will cover the debentures issuance for the financing of the construction and operation of Phase II of the Pirapora solar complex located in Minas Gerais state. That phase consists of five separate solar parks.
Local units of EDF Energies Nouvelles (EDF EN), the renewables arm of EDF SA (EPA:EDF), and Canadian Solar Inc (NASDAQ:CSIQ) are the developers of the photovoltaic (PV) project.
Due to IDB Invest's participation, the PV project will secure a 16-year financing, which is not possible with commercial banks. Pirapora's Phase II will also be the first large-scale solar project to be financed on a project finance basis in Brazil, IDB said.
When operational, the plan will help Brazil achieve its goal of reducing greenhouse gas emissions by 43% by 2030, eliminating approximately 3.3 million tonnes of carbon dioxide (CO2) emissions during its life.
(BRL 1 = USD 0.27/EUR 0.23)