MPC Capital secures financial closure for windpark in Mongolia

MPC Renewable Energies, a subsidiary of international investment manager MPC Capital AG, along with the project developer Ferrostaal, the Danish Climate Investment Fund (DCIF) and other project partners, has achieved financial closing for the Sainshand 55 MW onshore windpark in Mongolia, for US$120 million.

The lenders have agreed to provide a total project financing of US$78.5 million, which comprises the European Investment Bank (EIB) funding of US$47 million and the European Bank for Reconstruction and Development (EBRD) funding of US$ 31.5 million.

Dr. Roman Rocke, Management Board member of MPC Capital AG, commented:

"This project is an important step that advances the implementation of our infrastructure strategy. It demonstrates our group's capability to handle innovative projects and to close in challenging environments." 

The new Sainshand windpark is a key step for reducing carbon emissions and will make a large impact on the increasing demand for power in Mongolia. Construction will start shortly and is expected to be completed before the end of next year. Sainshand is an ideal site for onshore wind energy, according to three years of wind surveys that measured the high-yield winds in this particular area of the Gobi desert. The Sainshand onshore windpark will be the largest in Mongolia, with 25 turbines and a yearly output of approximately 200 GWh clean energy.

MPC Renewable Energies GmbH along with MPC Industrial Projects GmbH form the Infrastructure Unit of MPC Capital AG. The division offers attractive investment opportunities in the infrastructure space, including renewable energies as well as conventional power, petrochemicals and other industrial assets. Recent transactions include the 172 MW windpark project 'Âncora' in Portugal and the 50 MWp PV plant 'Paradise Park' in Jamaica.