IFC provides €19.1 M for 42 MW Serbian wind project

IFC is helping Serbia increase its supply of renewable energy by lending €19.1 million (US$25.7 million) to Elicio, a subsidiary of Nethys Group, a Belgium-based energy and telecommunications group, for the 42MW Alibunar wind farm. 

The agreement, which includes an A Loan of €15.5 million and a C Loan of €3.6 million, was signed on June 28 and syndication was closed on September 11.

Unicredit, the Netherlands Development Finance Company (FMO) and Green for Growth Fund (GGF) have agreed to provide a further €40 million in B Loans to the project, which will help boost Serbia’s renewable energy production and improve the energy mix and electricity supply for homes and businesses in the northern province of Vojvodina. The project will also help Serbia meet its obligations under the Energy Community Treaty to have 27 percent of energy consumption from renewable sources by 2020. 

Ludo Vandervelden, General Manager of Elicio, said:

“IFC’s strong involvement and backing demonstrates the strength of the project, and also Serbia’s ability and willingness to attract large investments in renewable energy. The recent amendments to the renewable energy laws paved the way for us to reach this important milestone and finally start construction, after years of ground-breaking development work.” 

Wiebke Schloemer, IFC’s Head of Infrastructure in Europe, the Middle East, and North Africa, said:

“The Alibunar wind farm is the largest wind farm project financed in Serbia up to date. IFC’s support for renewable energy is an important part of our work to address climate change and improve access to infrastructure. The project also highlights IFC’s creating markets strategy, paving the way for other renewable energy projects looking for long-term financing from international or regional financial institutions. It is also a result of IFC’s work with the government of Serbia to improve relevant bylaws and the model power purchase agreement.” 

The project’s wind turbine provider will be Senvion, that will also be the project’s operation and maintenance contractor. As well as its role as B Loan lender, Unicredit Serbia will act as account bank, VAT lender and interest hedging provider (alongside IFC). Allen & Overy and Karanovic & Nikolic acted as Lenders Legal Advisor, and DNV GL acted as Lenders Technical Advisor. Elicio was advised by White & Case and Karanovic & Nikolic.