São Paulo, December 11
th
, 2014
– IFC, a member of the World Bank Group, announced that it had mobilized about BRL 260 million (approximately $100 million) financing from Itaú Unibanco, a major Brazilian bank, to Enel Green Power Group, a world leader in renewable energy. This financing will contribute to meet growing demand for renewable energy solutions in Brazil, supporting job creation.
Arranged by IFC, Itaú’s loan is part of an IFC financing package to support Enel’s plan to build over 260 MW of wind power in the states of Bahia, Pernambuco and Rio Grande do Norte, all in Brazil’s northeast. The 10-year term loan by Itaú comes in addition to and has the same terms of the IFC $200 million Brazilian Real-linked loan to Enel closed in May 2014 on IFC’s own account.
Brazil has a large untapped renewable energy generation potential comprising wind, small hydro and biomass resources. Installed capacity of renewable energy is expected to increase by 10 percent through 2021 to meet the rising demand for power and reach Brazil’s goal to increase the share of renewable sources in the country’s energy mix. Investments in renewable energy are a key development priority for IFC, as they help diversify Brazil’s energy matrix, create jobs, and contribute to sustained economic development.
“It is testament to Enel Green Power's solid business model and financial strength that we are able to attract top quality financing partners such as Itaú and IFC as we continue to build on our position in Brazil”, stated Giulio Carone, Enel Green Power CFO. “We have reached nearly 300 MW of installed wind and hydro capacity, and have recently been awarded with over 450 MW from wind and solar in two auctions in a row, in addition to more than 300 MW of projects already in execution across all three technologies.”
“Through the combination of Itaú's experience in project finance and our close partnership with IFC, we successfully concluded another important renewable energy financing, which is one of our target sectors in Brazil”, said Marcelo Girão, Head of Project Finance for the power sector at Itaú BBA, the Corporate and Investment Bank of Itaú Unibanco holding.
“IFC is excited to have Itaú, a long-term client and partner, join us to support Enel Green Power’s plan to expand wind power generation in Brazil”, said Cheryl Edleson Hanway, IFC Brazil Head of Infrastructure. “The diversification of power generation sources has become a pressing factor for Brazil’s economic growth and increased competitiveness. This investment will also support job creation and the development of the Northeast region”.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
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