09 - 08 - 2019

Genneia Signs 15-Year term Non Recourse Project Finance for Necochea wind farm

Buenos Aires, August 9th, 2019

Genneia signed on August 2nd 2019 a long-term financing agreement for US$ 51 million for the construction of the Necochea wind farm.

Financing is provided to SPV Vientos de Necochea S.A., a subsidiary controlled through a 50/50 joint venture between Genneia and Centrales de la Costa Atlántica S.A.

The financing involves a 15-year A-B Facility structure. The Facility A Loan includes a Guaranteed Tranche and an Uncovered Tranche. The Guaranteed Tranche is lent by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) and guaranteed by the EKF Export Credit Agency of Denmark (EKF), and the Uncovered Tranche is lent directly by FMO. The Facility B Loan is granted directly by FMO and guaranteed by EKF from year 5 and onwards. FMO & Sumitomo Mitsui Banking Corporation (SMBC) acted as co-arrangers.

Necochea wind farm is part of RenovAr 1.5 program and will have an installed capacity of 38 MW. Total capex is estimated at US$ 62 million. The wind farm will generate clean energy similar to the consumption of 53,000 households and will avoid significant CO2 emissions.

The signature confirms the leadership of Genneia in the execution of non-recourse Project Finance in Argentina.

This new milestone is in line with the strong relationship built with a group of ECAs, European DFIs and regional development banks such as EKF, FMO, EH, KfW, DEG and CAF, and international commercial banks such as SMBC, that are supporting our successful expansion plan through Project Finance solutions.

In the last twelve months, Genneia closed long-term non-recourse project finance for 6 projects, for a total of approximately US$ 450 million in debt.

About Genneia

Genneia is the leading renewable power generation company in Argentina. The Company is primarily engaged in the generation of electrical power from both renewable (wind and solar power) and conventional (thermal power) sources. As of July 2019, installed capacity totals 1,113 MW (498 MW of renewable and 615 MW of thermal).

As part of its expansion plan, Genneia is building six new wind farms: Madryn II (151 MW), Chubut Norte II (26 MW), Chubut Norte III (83 MW), Chubut Norte IV (58 MW), Pomona II (12 MW) and Necochea (38 MW), all of them expected to come online between 2019 and 2020. Genneia will also build a biomass plant named La Florida (19 MW), with expected COD in 2021.

About Centrales de la Costa Atlántica S.A.

CCASA is a power generation company created in 1997 and headquartered in La Plata, in the Province of Buenos Aires. It is owned by the Province of Buenos Aires (99%) and Banco de la Provincia de Buenos Aires (1%).  The company operates four thermal power plants: 9 de Julio (240 MW), Necochea (206 MW), Oscar Smith (126 MW) and Mar de Ajó (31 MW) – with a combined installed capacity of 603 MW.