Press Release from 2019-02-21 / KfW IPEX-Bank
Total Eren, KfW IPEX-Bank and FMO achieve financial closing for 50.4 MW wind project in southern Argentina
Paris/Berlin/Buenos Aires, 21st February 2019 – Total Eren, a leading renewable energy Independent Power Producer (“IPP”) based in Paris, is pleased to announce the successful closing of the financing of its 50.4 MW “Malaspina” wind project in southern Argentina. The USD 138 million project is being financed by KfW IPEX-Bank and the Dutch development bank (FMO).
The “Malaspina” wind farm is located in Chubut, one of the five Patagonian provinces which lies on the Atlantic coast and where average wind speeds can exceed 10 m/s (comparable with locations of offshore wind farms in the German part of the North Sea). The purchasing of electricity is secured via a USD-based 20-year Power Purchase Agreement (PPA) with CAMMESA, the partially state-owned operator on the Argentinian electricity market.
The 50.4 MW “Malaspina” wind farm, representing an investment cost of around USD 138 million, is co-financed by KfW IPEX-Bank and FMO. While KfW IPEX-Bank is contributing a tranche of around USD 64 million, 95 % of which is covered by Euler Hermes, FMO provides USD 40 million.
The financing provided by KfW IPEX-Bank will be dedicated to the import of technology and equipment, which will be used for the construction of the project. The wind farm will be equipped with 14 type 3.6M114 wind turbines from the German company Senvion. The latter will also take over the maintenance and servicing of the wind farm for the duration of the loan term, which corresponds to 15 years upon commissioning. The construction of the farm is scheduled for completion during the third quarter of 2019.
The financial closing of the “Malaspina” wind farm follows the successful financing of Total Eren’s “Vientos Los Hercules” wind farm (97.2 MW, currently under construction), which was completed in December 2017.
Fabienne Demol, Executive Vice President and Global Head of Business Development of Total Eren, commented: “We are thrilled to reach the financial closing of the Malaspina wind project, which is an important milestone for us: Malaspina represents our second wind project in Argentina and reinforces our commitment to this market. I want to thank our experienced team for their excellent work to identify and deliver a successful financing structure for this project. I am excited to see the launch of the Malaspina wind farm and I am looking forward to developing further renewable energy projects both in Argentina and the Latin American region.”
Markus Scheer, member of the Management Board of KfW IPEX-Bank in charge for Power, Renewables and Water, stated: “We are pleased about the successful financial closing of the Malaspina wind project for several reasons: The collaboration with Total Eren and FMO was both constructive and expedient. At the same time, the wind farm underscores our commitment to environmental and climate protection as well as KfW IPEX-Bank’s role as supporter of European exports. In the past 12 months KfW IPEX-Bank has financed five wind farms in Argentina with a total capacity of around 400 MW. This clearly shows our focus on the Latin American market and its relevance for the German and European export industry.”
Linda Broekhuizen, Chief Investment Officer of FMO, added: “We are proud to contribute to the funding of this wind farm in close collaboration with KfW IPEX-Bank. The entrepreneurship of Total Eren and their long-term commitment to renewable energy are leading examples for us: we are excited to join them on this journey towards a sustainable economy for current and future generations.”
About Total Eren
Founded in 2012 by Pâris Mouratoglou and David Corchia, Total Eren has built up a substantial and diversified portfolio of wind, solar and hydroelectric assets representing an installed gross capacity of more than 1,600 MW in operation or under construction worldwide. Through partnerships with local developers, Total Eren is currently developing numerous energy projects in countries and regions where renewable energy represents an economically viable response to growing energy demand. Its objective is to achieve a global net installed capacity of more than 3 GW by 2022. On 1st December 2017, Total S.A, the major energy company, has acquired an indirect 23% interest in Total Eren. For more information, please visit www.total-eren.com
About KfW IPEX-Bank
Within KfW Group, KfW IPEX-Bank is responsible for international project and export finance. Its function of providing financing to boost the German and European economy is derived from the legal mandate assigned to KfW. It offers medium and long-term financing to support key export industries, to develop economic and social infrastructure and to fund environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling KfW's promotional mission. It is represented in the most important economic and financial centres across the globe. For more information, please visit: www.kfw-ipex-bank.de
About FMO
FMO is the Dutch development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a more than 45-year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 9.2 billion spanning over 82 countries, FMO is one of the larger bilateral private sector developments banks globally. For more information: please visit www.fmo.nl
For more information, please contact:
Total Eren
Solange Petit de Bantel, Communication & Public relations Manager
T: +33 1 58 97 58 07 / M : + 33 6 18 23 76 99 / E:
Yannick Tetzlaff, Laura de Carné (Brunswick Group)
T: +33 1 53 96 83 83 / E:
KfW IPEX Bank
Philipp Kielbassa, Vice President Communications
T: +49 69 7431 6431 / E:
FMO
Paul Hartogsveld (FMO), Senior Communications Officer (PR)
T: +31 70 314 9928 / M: +31 6 11589127 / E:
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