IFC arranges financing for Croatian wind project

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IFC arranges financing for Croatian wind project

The International Finance Corporation (IFC) and Independent Power Producer RP Global are joining forces to build a wind farm near Dubrovnik and expand Croatia’s renewable energy production.

IFC is arranging up to €42.5 million in financing for the Rudine wind farm, which RP Global will build and operate in the coastal town of Slano, some 32 kilometers northwest of Dubrovnik.

The 34.2-megawatt farm will supply power to thousands of homes and businesses and help combat climate change by reducing greenhouse gas emissions by more than 24 tons of CO2-equivalent each year.

Bojan Rescec, Country Manager of RP Global in Croatia, said:

“The tough legal framework notwithstanding, we meet the highest environmental standards and – thanks to the ongoing support of IFC and our suppliers – we are finally starting implementation on this project, which has the perfect location for the efficient use of wind as an energy resource.”

IFC will provide a €18.9 million loan to the local project company, which is majority owned by RP Global Holding. IFC mobilized an additional €23.6 million from UniCredit Bank Austria through a syndicated loan. UniCredit has actively participated in structuring the financing and continues to support the project with other banking products.

The total project cost is estimated at €53 million. The farm will boost Croatia’s supply of wind-generated power 11 percent, reduce the country’s dependence on imports, and help it meet its European Union energy targets.

Thomas Lubeck, IFC Regional Manager for the Western Balkans, said:

“The Rudine wind farm will make a significant contribution to Croatia’s renewable energy production and improve electricity supply in the area around Dubrovnik, one of the key tourist regions in the country. IFC’s support for renewable energy is an important part of our work to address climate change and improve access to infrastructure.”

This is the second wind project developed by RP Global in Croatia. In 2012, IFC also supported RP Global's first facility – the 43.7-MW Danilo wind farm, near Sibenik – by providing €55 million in financing.

RP Global is headquartered in Vienna, Austria.

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