August 22, 2019 |
Argentine power company closes its sixth project finance deal in a year with a $51m loan from FMO
Argentina's Genneia said it has secured a $51m loan to finance construction of the 38 MW Necochea wind power project, the sixth project finance deal that it has closed in a year.
The Dutch development bank FMO and the Japanese lender SMBC were co-arrangers on the 15-year loan, but only FMO provided the money with backing from the Danish export credit agency EKF. The two-part loan includes a covered tranche and an uncovered tranche that begins five years after the start of commercial operations, Genneia said.
Genneia was awarded a 20-year power purchase agreement (PPA) for Necochea during a RenovAr renewable energy auction in November 2016. The company has financed six projects over the past year with a total of $450m in loans, it said.
At the end of July this year, Genneia had 1,113 MW in total installed capacity with 498 MW in renewable energy and 615 MW in thermal power. The company plans to start operations at six wind farms by 2020 and also finish a 19 MW biomass plant in 2021.