IDB Invest and Inter-American Development Bank secure financing for 192 MW solar PV project in Brazil

The 191.5 MWp Pirapora I solar power project raised BRL$239 million (US$64 million) of infrastructure debentures through private placement to accredited institutional investors. The debentures have a tenor of 16 years and are guaranteed by the Inter-American Development Bank and IDB Invest, the private sector arm of the IDB Group.

The Inter-American Investment Corporation (IIC)’s participation in the project will be through a short-term Bridge Loan facility denominated in Brazilian reales to provide funding for certain construction costs.

BTG Pactual acted as a financial advisor to the sponsors for this transaction.

The Pirapora I project consists of the design, construction, commissioning and operation of five solar photovoltaic plants with a combined capacity of 191.5 MW, as well as a 10.3-kilometer high voltage transmission line (138kv) and other interconnection facilities be located in the municipality of Pirapora, State of Minas Gerais, Brazil.

The project approximately provides 357 MWh of clean solar PV energy. The project contributes to Brazil’s goal to reduce greenhouse gas emissions by 43 percent by 2030 by eliminating approximately 3.3 million tons of CO2 during the life of the project.