The EBRD and Iberdrola Renovables, S.A. (IBR), the world’s leading developer in the renewable energy sector, are joining forces to promote renewable energy projects in eastern Europe. The Bank’s equity investment of up to €125 million in Iberdrola Renovables subsidiaries in Poland and Hungary, approved by the EBRD Board of Directors in January.
Through this investment the EBRD is acquiring a 25% stake in Renovalbes Polska Sp. z.o.o. (IBR Polska) and Iberdrola Renovables Magyarország Kft (IBR Magyar), wind farm developing companies operating in Poland and Hungary respectively, 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.
“This project represents a continuation of the EBRD’s successful cooperation with Iberdrola Renovables. With the support of the EBRD’s investment, Iberdrola Renovables will double its capacity in eastern Europe, helping the region to increase the volume of green energy generation”, said Riccardo Puliti, EBRD Managing Director for Energy.
The EBRD investment in IBR Polska and IBR Magyar follow a similar transaction with Iberdorla Renovables in Estonia. In 2008 the Bank acquired 25% of the Estonian subsidiary of Iberdrola Renovables, OÜ Raisner.
To date the EBRD has financed five wind farm projects led by Spanish companies. In addition to the investments in Iberdrola Renovables’s subsidiaries, the Bank has supported the construction of a 50MW wind farm project in Tychowo, in northern Poland, with a PLN 125.9 million loan (€29 million) offered in 2009 to the Polish subsidiary of the RP Global. Earlier this year the EBRD provided a €60 million loan to Eolica Bulgaria, majority-owned by the Spanish Enhol Group, to finance the development of the Suvorovo wind farm.
Overall, the EBRD has invested over €2.6 billion in various projects implemented in countries of its operation by Spanish-based sponsors in such sectors as infrastructure, energy and natural resources, financial institutions and agribusiness. The total value of these projects reaches €8 billion. (press release)