The 92.3MW Terra Santa wind project secured $45.2m of financing while 67.5MW Maral wind power project secured $34.2m funding
French independent power producer (IPP) Total Eren has secured BRL423m ($79.4m) funding for its 160MW wind portfolio being constructed in Rio Grande do Norte, Brazil.
The company has obtained financing for its two wind power projects in long-term debt financing from Brazilian development bank Banco do Nordeste (BNB) with a maturity of 22 years.
The Brazilian bank is serving as the sole lender of the transaction with a limited non-recourse letter of credit from Sumitomo Mitsui Banking, Banco do Brasil and Banco Santande.
Approximately BRL241m ($45.2m) was secured for the development of 92.3MW Terra Santa while BRL182m ($34.2m) for the 67.5MW Maral project.
The overall investment required for the two wind power projects has reached nearly BRL825m ($154.8m).
Total Eren chief financial officer Laurence Juin said: “We are pleased to have finalized the financing of our first wind projects in Brazil, Terra Santa and Maral.
“I would like to thank our financing partners: Banco do Nordeste, Sumitomo Mitsui Banking, Banco do Brasil, and Banco Santander, as well as our teams for their excellent work in achieving this transaction despite the current context related to the covid-19 pandemic.”
The company said that the two wind power projects have 20-year private power purchase agreements (PPAs) and are expected to commence operations by the mid of next year.
Once operational, the projects are estimated to generate approximately 720GWh of power annually, which is enough to meet the electricity requirements of nearly 400,000 Brazilian homes.
Furthermore, the project is expected to employ approximately 900 people during the construction phase and 16 people for the operations and maintenance of the projects.
In March this year, Total Eren has secured BRL280m ($64m) financing for the development of Dracena solar PV facility in Brazil through the issuance of long-term infrastructure debentures.