New 80 MW wind farm in Chirnogeni, Romania

By Svitlana  Pyrkalo

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The EBRD continues to support the development of renewable energy in Romania – a country that strives to meet the EU’s green energy quotas.

The Bank is providing a loan of €91 million towards the construction and operation of an 80 MW wind farm located in Chirnogeni in the Dobrogea region. The construction will start before the end of 2012, and full commissioning is expected to take place during the first quarter of 2014. The loan will be under an A/B structure where €31 million will be lent for the EBRD’s own account and €60 million syndicated to Erste Group Bank, ING Bank and Unicredit Bank Austria.

The complex 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.

The total cost of the project is expected to be roughly €130 million.

“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” said 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” said Efthyvoulos Paraskevaides, CEO of EPGE.

EPGE is the developer of the Chirnogeni wind project.  EPGE is a privately owned power development company incorporated in Cyprus, and a member company of the Paraskevaides Group based in Cyprus. EPGE is focusing on developing power projects in eastern Europe, the Balkans, the Middle East, the Gulf region, and North Africa.

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

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