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New loan finances operation of wind farm
Bucharest, Romania, July 12, 2011
—IFC, a member of the World Bank Group, and the European Bank for Reconstruction and Development (EBRD) are supporting Romania’s strategy to increase its renewable energy production by lending €73.3 million to co-finance the operation of the 90 MW Pestera wind farm.
EBRD and IFC are lending €36.7 million each to Pestera Power SA, majority-owned by EDP Renováveis (EDPR), the world’s third-largest wind energy company. Both will retain €26.9 million for their own accounts, syndicating €9.7 million each to a group of commercial banks. This is the second investment and project financing by EBRD and IFC in the renewable energy sector in Romania, following their joint investment last month in the 138 MW Cernavoda wind farm, also majority owned by EDPR.
"EDPR is pleased to be able to continue its relationship with partners who share our strong commitment to the development of safe and clean renewable energy in Romania," said Ana Maria Fernandes, CEO of EDPR.
Nandita Parshad, EBRD Director for Power and Energy, said, “We are delighted to finance this second wind farm in Romania as supporting renewable sources of energy is a priority for the EBRD in Romania. The Cernavoda and Pestera project financings will have a very high demonstration impact on project financing for renewables and will pave the way for the further development of this sector.”
Snezana Stoiljkovic, IFC Director for Eastern Europe and Central Asia, said, “Pestera and Cernavoda wind farms will make a significant contribution to Romania’s renewable energy production and improve electricity supply to consumers and businesses. IFC’s support for renewable energy is an important part of our work to address climate change and improve access to infrastructure.”
The Pestera and Cernavoda wind farms in the Dobrogea region of Romania will together comprise one of the largest wind farms in the country, with a total capacity of 228 MW. This will represent roughly 40 percent of the total wind generation capacity in Romania.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
About IFC and Renewables
Addressing climate-change mitigation is an IFC priority that is reflected in our achievements in renewable energy. In fiscal 2010, we increased our investments in renewable energy to 72 percent of commitments in the power sector, up from 28 percent in fiscal 2008. Since 2005, IFC has financed more than $2.3 billion in renewable energy projects.
The EBRD is an international financial institution, owned by 61 countries and two intergovernmental institutions, supports projects in 29 countries from central Europe to central Asia. Investing primarily in private sector clients whose needs cannot be fully met by the market, the Bank promotes entrepreneurship and fosters transition towards open and democratic market economies. The EBRD is the largest single investor in the region, mobilizing significant foreign direct investment into its countries of operations. The Bank invests mainly in private enterprises, usually together with commercial partners. It provides project financing for the financial sector and the real economy, both new ventures and investments in existing companies. It also works with publicly-owned companies to support privatization, restructuring of state-owned firms and improvement of municipal services.
To date the EBRD has financed the construction and operation of numerous renewable energy projects in the EBRD’s countries of operations, including Poland, Bulgaria, Estonia, Hungary, Mongolia and Turkey, having committed over €585.5 million in the renewable energy sector.
Overall, since the beginning of its activity in Romania, the Bank has invested over €5.1 billion in various sectors of the country’s economy, of which more than €576 million has been in the energy sector.
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