BNDES backs Geribatu with $275m

The Brazilian Development Bank (BNDES) has approved a R$603.9m ($274.5m) long-term loan for the Geribatu wind complex, located in Brazil’s southernmost state of Rio Grande do Sul.

The project is owned by a joint-venture formed by the private equity fund Rio Bravo (51%) and the state-owned company Eletrosul (49%).

The complex has a total capacity of 258MW and is made up of 10 wind farms, which can deliver power to up 500,000 inhabitants.

Geribatu is slated to become operational by the end of next year using turbines supplied by Spanish manufacturer Gamesa.

BNDES' financing will make up 63.7% of the total investment needed for Geribatu, which is set at R$956.5m.

Geribatu will also issue a R$90m debenture tranche. According to the BNDES, it might also buy a share of this debenture via a new financial incentive mechanism launched by the bank early this year.

Eletrosul said in a statement that the Geribatu project has just started the process of erecting its 129 wind turbines.

In a separate development, Brazilian renewables developer CPFL Renováveis has decided to take a R$395m ($179,5) long-term loan with BNDES.

The funding will be used to construct five wind farms, all located in the northeast state of Rio Grande do Norte.

Together they make up a total capacity of 108MW.

According to a statement issued by CPFL Renováveis, the annual cost of the 16-year long financing agreement is set at 7.18%.