Renova Energia SA, a Brazilian renewable energy company, got a 1.04 billion-real ($459 million) loan from the BNDES development bank for a wind power project.
The 16-year loan to subsidiary Renova Eolica has a six-month grace period after the Alto Sertão II wind project starts operating in Brazil’s Bahia state, the Sao Paulo-based company said in a regulatory filing last night. The loan was approved by Renova on May 29 and by BNDES on June 3.
Renova, which is controlled by Cia. Energetica de Minas Gerais, or Cemig, is building the 386.1-megawatt Alto Sertao II complex after winning contracts to sell energy in government auctions in 2010 and 2011. The company already has a complex of wind farms known as Alto Sertao I, which can produce 293.6 megawatts. The company has a total capacity of 1 gigawatt for wind energy.
A BNDES official said that the loan is part of the bank’s program called Special Agency for Industrial Financing, known as Finame, which requires companies that borrow money to buy their equipment from local producers. The official asked not to be identified by name because of the bank’s policy and didn’t provide any more details.
Renova didn’t immediately respond to a request for comment.