EDP Renováveis executes project finance for 120 MW in Brazil
Madrid, January 26th 2015: EDP Renováveis, S.A. (“EDPR”) has executed project finance structure agreements with the Brazilian Development Bank (“BNDES”) for the Baixa do Feijão project, which comprises four wind farms with a total capacity of 120 MW.
The Baixa do Feijão project is currently under construction and is located in the State of Rio Grande do Norte, one of the windiest locations of Brazil.
The long-term contracted debt facilities amount to R$ 306 million and its financial closing is subject to customary conditions.
The execution of this agreement reflects EDPR financing strategy to contract long-term debt in local currency at competitive prices in order to mitigate the refinancing risk and to reduce the foreign exchange risk by having a natural hedge between revenues and costs.
In December 2011, at the Brazilian energy A-5 auction, these four projects were awarded with 20-year Power Purchase Agreements (“PPAs”) starting in January 2016.
EDP Renováveis, S.A.