Enel Green Power SpA, acting through its wholly-owned subsidiary Enel Green Power RSA (Pty) Ltd, has signed a loan agreement for a total of 2,100 million South African rand (equal to about €160 million) with KfW IPEX-Bank to finance the Gibson Bay wind farm.
The bank will act as the lender, sole lead arranger and agent, with partial credit insurance coverage provided by Euler Hermes, the German Export Credit Agency.
The loan, secured by a parent company guarantee from Enel Green Power, is the first granted by KfW IPEX-Bank to the Enel Green Power Group. The agreement will provide EGP RSA with two separate lines of financing, with maturities of 7 and 17 years respectively, bearing an interest rate in line with the market benchmark.
The loan will be used to finance the investment in the Gibson Bay wind farm, located in Eastern Cape Province, South Africa. The plant will have 37 turbines with a capacity of 3 MW each, for a total installed capacity of 111 MW and capable of generating about 420 GWh of power a year.
Hermes’ institutional role involves supporting German component manufacturers, to which Enel Green Power has turned for plant construction and development.