The deal will cover part of the investment required to build the recently inaugurated 102 MW Apiacas hydropower cluster, which is located in the state of Mato Grosso in Brazil’s Central-West Region.

Enel Global Renewable Energies head Francesco Venturini said: “We are extremely pleased with the outcome of this transaction, which is testament to the solidity of our Brazilian business.

“Just one month after Apiacas became fully operational, we have managed to obtain BNDES funding aimed at financing industrial projects and large-scale infrastructure in the country.

"While we strengthen our leading position in Brazil, we also continue to attract top local and international financing partners, who appreciate the commitment that we have made in a country that is so strategically important to Enel.”

In line with the loan agreement, the first instalment of BRL293m($90m) was disbursed after the signing, whereas the second instalment of BRL80m ($25m) will be disbursed in early 2017, subject to the fulfilment of conditions precedent customary for this type of transaction.

The loan bears an interest rate based on TJLP (Taxa de Juros de Longo Prazo), the long-term interest rate reviewed quarterly by the Brazilian Central Bank. TJLP currently stands at 7.5%, below the current interbank rate in Brazil of 13.63%.

TJLP is used as base rate for loans granted by BNDES to private companies whose projects are deemed eligible for federal funding.

Apiacas has a total installed capacity of 102MW and is composed of three power plants: Salto Apiacás (45MW), Cabeca de Boi (30MW) and Fazenda (27MW).

Apiacas is able to generate more than 490GWh per year, enough to meet the annual energy consumption needs of more than 200,000 Brazilian households, while avoiding the emission of about 280,000 tonnes of CO2 into the atmosphere.

Apiacas has a 1.2MW solar PV system installed on its premises, adding its own renewable power to that produced by the hydro plants.

Enel Group acting through the three special purpose vehicles (SPVs) that are held by Enel Green Power Brasil (EGPB) and own each plant of the Apiacas hydropower cluster: Enel Green Power Salto Apiacas, Enel Green Power Cabeça de Boi  and Enel Green Power Fazenda.

Enel invested approximately $287m in the construction of Apiacas, an investment financed through the Group’s own sources as well as the BNDES loan.

The facility is supported by a 30-year power purchase agreement (PPA) for the sale of a fixed amount of power generated by the three hydro plants to a pool of distribution companies operating in Brazil’s regulated market.

The Enel Group, through its subsidiaries Enel Green Power Brasil (EGPB) and Enel Brasil, has a total installed capacity of 1.3GW in the Brazilian renewable energy generation sector – of which 401MW from wind power, 12MW from solar PV and 893MW from hydropower – as well as a further 442MW of wind projects and 807MW of solar projects currently in execution.