€125 million equity investment to promote renewable energy
The EBRD Board of Directors has approved an equity investment of up to €125 million via capital increase in Iberdrola Renewables Polska Sp. z.o.o. (IBR Polska) and Iberdrola Renovables Magyarország Kft (IBR Magyar), wind farm developing companies operating in Poland and Hungary respectively.
IBR Polska and IBR Magyar are wholly-owned by the Spanish-based Iberdrola Renovables, S.A. (IBR), the world leading developer in the renewable energy sector, currently present in 23 countries.
Subject to completion of legal documentation, through this investment the EBRD would acquire a 25 per cent stake in IBR Polska and IBR Magyar by subscribing to newly issued shares of the two companies. The project represents the EBRD’s first investment in the Hungarian power sector and the Bank’s first equity participation in Polish wind farms.
The two IBR subsidiaries are currently operating five wind farms (four in Poland and one in Hungary), with a total capacity of 211 MW. By the end of 2010 IBR will commission two more wind farms in Hungary and another wind farm in Poland with total additional capacity of 98 MW.
The EBRD equity investment will help IBR Polska and IBR Magyar to implement their development strategies, supporting Poland and Hungary in increasing the volume of green energy generation, a requirement set by the EU.
This investment represents a continuation of the Bank’s cooperation with IBR. In 2008, in a similar transaction, the Bank has acquired 25 per cent in IBR’s subsidiary in Estonia.