Brazil's Renova nails $441m wind loan

Brazil's National Development Bank (BNDES) agreed to lend Renova Energia R$1bn ($441m) to finance the 386.1MW Alto Sertão II complex the company is building.

The 16-year loan had been approved by Renova's board of directors on May 29 and by the bank on June 3, Renova said in a statement.

The company has a grace period of six months after the start of the complex's operations.

Alto Sertão II is located in the northeastern state of Bahia and is made up of 15 wind projects. Renova sold power from the complex at the 2010 and 2011 national auctions.

According to the terms of the contract they should be ready to operate in 2014 and 2015.

Renova will also use the loan to retire promissory notes in the Brazilian market and pay back a bridge loan BNDES.