news - USD 91.5 million in loans for Eolo the Nicaragua wind project

The Eolo wind project, owned by Globeleq Mesoamerica Energy (Wind) Limited, a subsidiary company of Globeleq Generation Limited and Mesoamerica Power, has secured USD 91.5 million in debt financing.

Eolo is located in the province of Rivas on the shores of Lake Nicaragua, about 125 kms south of the capital Managua. The project will generate 44MW of electricity, using 22 x 2.0 MW Gamesa G90 wind turbinesand sold through 20-year PPAs to the privately owned Distribuidora Electricidad de Sur S.A (DISSUR) and Distribuidora Electricidad de Norte S.A. (DISNORTE), both subsidiaries of Gas Natural of Spain. Eolo will also construct a new substation and interconnection lines to enable connection to the national grid.  

Project debt financing of the project is provided by The Netherlands Development Finance Company FMO, (who acted as Mandated Lead Arranger with USD 40 million), PROPARCO, the private sector investment arm of the French development body Agence Française de Développement (with USD 26.5 million) and DEG, Deutsche Investitions und Entwicklungsgesellschaft mbH (USD 25 million).

“The addition of another quality renewable wind project enhances our position as the leading wind producer of power in Central America”, said Mikael Karlsson, Globeleq’s CEO, making reference to its operating wind farms in Costa Rica and Honduras; adding: “The Eolo project enables us to harness a natural and clean resource which will have significant and long term economic and environmental benefits for Nicaragua.” Eolo is in the final stages of its submission as a Clean Development Mechanism (CDM) under the Kyoto Protocol, which will enable it to earn carbon credits to sell into the international carbon trading markets.

Jay Gallegos, General Manager and Legal Representative for Globeleq Mesoamerica Energy (Wind), commented: “Our renewable energy experience in the region is unparalleled, and this will ensure a successful and efficient completion of the Eolo project. Civil construction works such as land clearing and road work have already begun, and we anticipate testing and operation of the turbines will be complete by the beginning of 2013.” Land rights, environmental and local construction permits have already been obtained. Globeleq Mesoamerica Energy (Wind) will communicate regularly with all stakeholders on the progress of the project.

“All lenders are very pleased to support this important private investment in Nicaragua. Project sponsors Globeleq and Mesoamerica Power have built an impressive portfolio of productive renewable assets in the region which has changed the energy matrix into a cleaner and more sustainable one. With our co-lenders DEG and PROPARCO, we are pleased to work with investors who are committed to renewable energy,” said Nanno Kleiterp, CEO of FMO.

About Globeleq

Globeleq Generation Limited is an Actis portfolio company and is an experienced operating power company, actively developing energy solutions for the emerging markets of Africa and the Americas. The company develops economically sustainable projects that support the continued development of the electric power sector in these regions.

www.globeleq.com

Globeleq Mesoamerica Energy (Wind) Limited is a company dedicated to the development, construction and operation of the Eolo wind project in Nicaragua.  It receives support from its shareholders, Globeleq Generation Limited and Mesoamerica Power.

About Mesoamerica PowerMesoamerica Power is a Central American investment group focused on the development of renewable energy in the region. Mesoamerica Power is managed by Mesoamerica, the leading private equity mergers and acquisitions and strategic consulting firm in Central America and the Andean Region. www.mesoamerica.com

About Actis

Actis invests exclusively in the emerging markets. With a growing portfolio of investments in Asia, Africa and Latin America, Actis has US$4.5bn funds under management. The company is driven by the conviction it brings more than capital to its investment and benefits its investee companies, investors and broader society. Actis calls this ethos the positive power of capital. www.act.is

Enquiries:

Paul York or Jay Gallegos

Globeleq Mesoamerica Energy (Wind) Limited

PH: +506 2228 9300

FX: +506 2228 9930

About FMO

FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 5.9 billion, FMO is one of the largest European bilateral private sector development banks.

www.fmo.nl

Press contact:

Paul Hartogsveld, Communications Officer (PR)

T: +31 70 314 9924                        

E: p.hartogsveld@fmo.nl 

About PROPARCO
PROPARCO is a Development Finance Institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South. Its mission is to catalyze private investment in emerging and developing countries with the aim of supporting growth, sustainable development and the achievement of the Millennium Development Goals (MDGs). PROPARCO finances investments that are economically viable, socially equitable, environmentally sustainable and financially profitable. PROPARCO is one of the main bilateral development finance institutions in the world. It invests on four continents encompassing the major emerging countries and the poorest countries, particularly in Africa, and has a high level of requirements in terms of social and environmental responsibility. www.proparco.fr

About DEG

DEG, member of KfW Bankengruppe, is one of the largest European development finance institutions. For nearly 50 years, DEG has been financing and structuring the investments of private companies in developing and emerging market countries. DEG’s aim is to establish and expand private enterprise structures in developing and emerging countries, and thus create the basis for sustainable economic growth and a lasting improvement in the living conditions of the local population.

www.deginvest.de