New loan finances operation
of wind farm
Bucharest, Romania, July 12, 2011—IFC,
a member of the World Bank Group, and the European Bank for Reconstruction
and Development (EBRD) are supporting Romania’s strategy to increase its
renewable energy production by lending €73.3 million to co-finance the
operation of the 90 MW Pestera wind farm.
EBRD and IFC are lending €36.7 million
each to Pestera Power SA, majority-owned by EDP Renováveis (EDPR), the
world’s third-largest wind energy company. Both will retain €26.9 million
for their own accounts, syndicating €9.7 million each to a group of commercial
banks. This is the second investment and project financing by EBRD and
IFC in the renewable energy sector in Romania, following their joint investment
last month in the 138 MW Cernavoda wind farm, also majority owned by EDPR.
"EDPR is pleased to be able to continue
its relationship with partners who share our strong commitment to the development
of safe and clean renewable energy in Romania," said Ana Maria Fernandes,
CEO of EDPR.
Nandita Parshad, EBRD Director for Power
and Energy, said, “We are delighted to finance this second wind farm in
Romania as supporting renewable sources of energy is a priority for the
EBRD in Romania. The Cernavoda and Pestera project financings will have
a very high demonstration impact on project financing for renewables and
will pave the way for the further development of this sector.”
Snezana Stoiljkovic, IFC Director for
Eastern Europe and Central Asia, said, “Pestera and Cernavoda wind farms
will make a significant contribution to Romania’s renewable energy production
and improve electricity supply to consumers and businesses. IFC’s support
for renewable energy is an important part of our work to address climate
change and improve access to infrastructure.”
The Pestera and Cernavoda wind farms
in the Dobrogea region of Romania will together comprise one of the largest
wind farms in the country, with a total capacity of 228 MW. This will represent
roughly 40 percent of the total wind generation capacity in Romania.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit
About IFC and Renewables
Addressing climate-change mitigation
is an IFC priority that is reflected in our achievements in renewable energy.
In fiscal 2010, we increased our investments in renewable energy to 72
percent of commitments in the power sector, up from 28 percent in fiscal
2008. Since 2005, IFC has financed more than $2.3 billion in renewable
The EBRD is an international financial
institution, owned by 61 countries and two intergovernmental institutions,
supports projects in 29 countries from central Europe to central Asia.
Investing primarily in private sector clients whose needs cannot be fully
met by the market, the Bank promotes entrepreneurship and fosters transition
towards open and democratic market economies. The EBRD is the largest single
investor in the region, mobilizing significant foreign direct investment
into its countries of operations. The Bank invests mainly in private enterprises,
usually together with commercial partners. It provides project financing
for the financial sector and the real economy, both new ventures and investments
in existing companies. It also works with publicly-owned companies to support
privatization, restructuring of state-owned firms and improvement of municipal
To date the EBRD has financed the construction
and operation of numerous renewable energy projects in the EBRD’s countries
of operations, including Poland, Bulgaria, Estonia, Hungary, Mongolia and
Turkey, having committed over €585.5 million in the renewable energy sector.
Overall, since the beginning of its activity
in Romania, the Bank has invested over €5.1 billion in various sectors
of the country’s economy, of which more than €576 million has been in
the energy sector.
For more information please visit www.EBRD.com.
Follow us on www.twitter.com/ebrd.