Italy’s Enel Group has signed a 20-year loan agreement with the Brazilian Development Bank (BNDES) worth US$115 million to finance the 102-MW Apiacas hydroelectric power complex.
Apiacas, located in Brazil’s Mato Grosso state, consists of the 45-MW Salto Apiacas, 30-MW Cabeca de Boi and 27-MW Fazenda plants — all of which went on line in November, according to Enel.
“We are particularly pleased with the result of this operation, which demonstrates the strength of our business in Brazil,” Enel Head of Global Renewable Energies Francesco Venturini said. “While we strengthen our leadership position in the Brazilian renewable energy sector, we continue to attract major local and international financial partners that positively evaluate our commitment to growth in Brazil, a country with strategic importance for the group.”
Per terms of the loan, a first installment worth about $90 million was paid at the signing of the agreement, while the remainder will be paid in the first quarter of this year, pending the completion of certain BNDES conditions.
The owner said the loan carries an interest rate of 7.5%, which making it more attractive than the 13.6% rate offered by the current Brazilian interbank.
Enel has invested about $287 million of its own money into the project. The company said electricity generated by the trio of plants will be sold to a number of Brazilian utilities under 30-year power purchase agreements.
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