Ignitis to get EUR-33.5m loan from NIB for Polish wind farm

Lithuanian utility Ignitis Group is to sign a deal for a loan of up to PLN 150 million (USD 39.5m /EUR 33.5m) with the Nordic Investment Bank (NIB) for the 94-MW Pomerania wind project in Poland.

The company said in a bourse statement today its board has approved the first-call guarantee agreement for the loan that will see its subsidiary UAB Ignitis Renewables, the owner of Pomerania Wind Farm sp z oo, pledge 100% of the shares of Pomerania Wind Farm in favour of the lender. The planned loan is to be repaid by the end of 2035.

The Pomerania wind farm, located in the Pomeranian Voivodship in northern Poland, is expected to be completed in the spring of 2021 and to generate 300 GWh a year.

Ignitis, which at the start of the month secured EUR 450 million (USD 531m) in an initial public offering (IPO), in March signed an agreement with the European Investment Bank (EIB) for a PLN-258-million loan, which will cover around 47% of the investment in the wind farm.

The company, previously known as Lietuvos Energija, bought the Pomerania project in the spring of 2019 from Spanish developer IGE, owned by environmental impact fund SI Capital. Before that, in November 2018, the same project won a 15-year guaranteed tariff of PLN 214.98 per MWh in a Polish auction.

(PLN 1.0 = USD 0.263/EUR 0.223)

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