EBRD lending Romania 91 million euros for wind farm

The European Bank for Reconstruction and Development (EBRD) is providing Romania a loan of 91 million euros towards the construction and operation of an 80 MW wind farm located in Chirnogeni in the Dobrogea region.

The project developer is EP Global Energy (EPGE), and the total cost of the project is expected to be roughly 130 million euros.

The construction will start before the end of 2012, and full commissioning is expected to take place during the first quarter of 2013. The loan will be under an A/B structure where 31 million euros will be lent for the EBRD's own account and 60 million euros syndicated to Erste Group Bank, ING Bank and Unicredit Bank Austria.

The deal will see the Marguerite Fund - the 2020 European Fund for Energy, Climate Change and Infrastructure - buy a 50 per cent equity stake in the Chirnogeni wind farm and EnerCap Power Fund buy another 30 per cent in the Project. The developer, EP Global Energy (EPGE), will remain a shareholder with a 20 per cent equity stake.

'This is the first pure limited recourse financing on the Romanian renewable sector. The EBRD is very pleased that it has mobilized considerable interest from commercial banks under the current difficult credit conditions,' says George Gkiaouris, Senior Banker for Power and Energy'

'EPGE is extremely proud to have reached closure on such an important flagship project after years of hard work and sustained effort. I would like to thank our partners and the EBRD's unwavering support throughout the financing process in challenging circumstances. The Paraskevaides Group has a 70-year track record of delivering high-profile projects and this is another example,' says Efthyvoulos Paraskevaides, CEO of EPGE EPGE is a privately owned power development company incorporated in Cyprus, and a member company of the Paraskevaides Group based in Cyprus.

To date, the EBRD has invested about 6 billion eurosin Romania in over 315 projects.