FRV Closes $82-million Solar PV Financing with Inter-American Development Bank
- The financing is IDB’s first financing of a solar PV project in Uruguay and its largest to date for a solar PV project.
- The deal will refinance a previous loan with the DNB Group and Intesa SanPaolo, allowing FRV to improve its project financing conditions and extend the maturity of its debt until November 2034.
- FRV, IDB and IE Foundation have signed an agreement under which the company will offer a 'Young Talent Leaders' scholarship to cover all the costs for the formation of a degree program that will allow a student from Uruguay to study at IE University in Segovia, Spain.
January 7, 2015 - Fotowatio Renewable Ventures (FRV) announced today the closing of an $81.9 million loan with Inter-American Development Bank (IDB) to build a solar PV farm, La Jacinta, in Uruguay. It is IDB’s first financing of a solar PV project in Uruguay and will be one of the largest solar PV projects in Latin America.
The deal allows FRV, a leading global solar development company with approximately 3GW of active project development backed by global private equity firm Denham Capital, to improve its project financing conditions and extends the maturity of its debt until November 2034.
The loan refinances a previous $70-million construction loan signed last July with the DNB Group and Intesa SanPaolo, for the construction of La Jacinta, a 65-megawatt photovoltaic plant in Salto Department in northwestern region of Uruguay.
La Jacinta marks the first solar power purchase agreement (PPA) signed with Uruguay’s state-owned company UTE (Administración Nacional de Usinas y Trasmisiones Eléctricas). The solar farm is part of the government’s sustainable energy policy to promote solar power in Uruguay. Once completed, the facility will generate enough electricity to supply approximately 35,000 homes in the area and remove 74,142 MT of CO2 emissions per year.
"The financing support of the Inter-American Development Bank will allow us to focus on the completion of the largest solar PV project in Uruguay as well as develop, over the long term, additional quality clean energy projects in the region,” said Rafael Benjumea, FRV’s CEO.
FRV and IDB also announced today the signing of an agreement with the IE Foundation which will offer a 'Young Talent Leaders' scholarship to allow a student from Uruguay to study in a degree program at IE University in Spain.
The scholarship, which is valued at more than $140,000 and covers all training in a degree program at the university, will be given by the three organizations to a student that demonstrates high academic merits, has a personal initiative of improvement as well as qualities of entrepreneurship. The grant covers tuition fees, lodging accommodation, academic materials, travel and meals support for four years.
“FRV has a firm commitment to contribute to economic and social development in the markets and communities in which it operates and we’re pleased to give back to the community in Uruguay, along with our partners at IDB, through this program,” added Benjumea.
FRV is a leading global solar development company with approximately 3GW of active project development in the emerging solar markets including Latin America, Australia, the Middle East and Africa. Such markets are primarily characterized by the fact that solar power generation can be provided at cost less than the marginal cost of power and/or have broad support for the development of solar power.
Since 2006, the management team has completed the construction, operation, maintenance and financing of over 500 MW of photovoltaic and CSP solar energy plants. Such projects represent more than $2.4 billion in total financings with more than 20 leading banks.
Denham Capital, an energy and resources focused private equity firm with more than $7.9 billion in invested and committed funds, is the majority shareholder in FRV.