news - FMO arranges USD 127.5 mln in loans for San Marcos wind farm in Honduras

The San Marcos wind project, owned by Vientos de Eletrotecnia, a member of Grupo Terra, has secured USD 127.5 million in senior debt financing.

The loans have been provided by The Netherlands Development Finance Company FMO, (who acted as Mandated Lead Arranger), the German development finance institution DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, PROPARCO, the private sector investment arm of the French development body Agence Française de Développement, OFID, The OPEC Fund for International Development  and ICCF, the Interact Climate Change Facility

Situated in the south west of Honduras nearby the border with Nicaragua, the 50 MW project involves the installation of 25 Gamesa G90 Wind Turbine Generators. Construction of the wind farm has started and commercial operation should be achieved by early 2015. The company will also construct substations and interconnection lines to enable connection to the national grid.

“For more than 10 years, Grupo Terra’s energy division has focused on generating energy through renewable technologies, and is proud to embark on the construction and generation of San Marcos Wind Project. It is the joint effort of great leadership, quality team work and exceptional partners outside and within the community which have made this project possible”, said Mr Ing. Miguel Nasser,VicePresident of Grupo Terra’s Energy Division.   Mr Jose Moran, the General Manager of the wind farm claimed  “gratitude to all those involved in the project, because this established good relations with the communities surrounding the project and of Honduras, for this second largest wind project in the country.”

The San Marcos wind farm fits FMO’s Renewable Energy policy as it helps Honduras reducing its dependence on imported fossil fuels for its electricity supply.

Mrs Linda Broekhuizen, FMO’s CIO, added: “At FMO we are proud to have been invited by Grupo Terra to arrange the debt funding of this wind farm with DEG, PROPARCO, OFID and ICCF. The entrepreneurship of Grupo Terra and their long term commitment to renewable energy are leading examples for us: we are grateful to joining them on this joint journey towards a sustainable economy for current and future generations.”

About Grupo Terra

Grupo Terra is a family-owned business corporation, headquartered in Honduras with presence in Latin America, with more than 35 years of experience in the local and regional energy sector with diverse technology projects; thermoelectric plants, and a refocus in the past 10 years on renewable energy such as hydro and wind. It’s the most active groups in the Central American region with investments in energy, oil and commercialization of oil products, infrastructure and related services. http://www.terra.hn

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 6.3 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl

Press contact:

Paul Hartogsveld

Senior Communications Officer (PR)

T: +31 70 314 9928  

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, a subsidiary of KfW, is one of the largest European development finance institutions. For more than 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

About OFID

The OPEC Fund for International Development (OFID) is the development finance institution established by the Member States of OPEC in 1976 as a collective channel of aid to the developing countries. OFID works in cooperation with developing country partners and the international donor community to stimulate economic growth and alleviate poverty in all disadvantaged regions of the world. http://www.ofid.org

About ICCF

Interact Climate Change Facility S.A. (ICCF) is a private limited liability company established under the laws of the Grand Duchy of Luxembourg, and is owned by 13 shareholders. ICCF finances renewable energy and energy efficiency projects in the private sector in developing countries and emerging markets. The funding capacity of ICCF is provided by Agence Française de Développement, the European Investment Bank (EIB) and by the following 11 EDFI members: BIO (Belgium), CDC (United Kingdom), COFIDES (Spain), DEG (Germany), FINNFUND (Finland), FMO (the Netherlands), NORFUND (Norway), OeEB (Austria), PROPARCO (France), Sifem (Switzerland) and SWEDFUND (Sweden). http://www.edfi.be/about/iccf.html