Enel Green Power SpA (EGPW), the renewables unit of Italy’s biggest utility, signed a 180 million-euro ($237 million) financing agreement with Denmark’s export credit agency and Citigroup Inc. (C:US) to fund wind projects abroad.
The 12-year loan will help fund the 120-megawatt Zephyr I wind farm in Romania, the 200-megawatt Caney River project in Kansas and the 90-megawatt Cristal venture in Brazil, Enel Green Power said today in a statement. The interest rate is “in line” with the market benchmark, it said, without elaborating.
Enel Green Power is expanding into new markets to counter lower demand in Europe, where the sovereign-debt crisis has cut electricity use. The company has earmarked global spending of 6.1 billion euros through 2016 to add 4.5 gigawatts of installed capacity, including about 460 megawatts of wind projects in Brazil, 340 megawatts in Chile and 350 megawatts in Mexico. It’s targeting about 500 megawatts of wind power in Romania.
Denmark’s export credit agency helps support Danish businesses by funding companies that use their products. Citigroup arranged the loan for the three wind parks, which will cost a combined 670 million euros to build, according to Rome- based Enel.
To contact the reporter on this story: Sally Bakewell in London at Sbakewell1@bloomberg.net
To contact the editor responsible for this story: Reed Landberg at email@example.com