KfW IPEX-Bank finances another wind farm in Argentina

KfW IPEX-Bank has once again structured a complex non-recourse senior debt financing of a wind farm in South America which was recently brought to a successful close with the Spanish sponsor Grenergy Renovables.

The 24-MW wind farm is funded through a 15-year export credit facility arranged by KfW IPEX-Bank and guaranteed by Euler Hermes in the form of extensive political and commercial export credit insurance providing 95 per cent cover.

The Kosten wind farm is owned by Grenergy and won a 20 year PPA under the Argentinian government's RenovAR programme. Under this initiative, the government awards long-term contracts for the generation of power using renewable energies. The purpose is to meet the target of covering 20% of energy demand using renewable energies by the year 2025. Currently this figure is at 2 per cent. Commissioning of the wind farm is scheduled for the end of Q2 2019. The Kosten wind energy project is located in the Argentinian province of Chubut.

Just in December 2017 KfW IPEX-Bank had assumed a lead role in the financing of the 97.2-MW wind project 'Vientos Los Hercules', which is under construction in Argentina's Santa Cruz Province. Argentina has turned into one of the global growth markets for Europe's wind turbine manufacturers. By financing these two wind farms in Argentina, KfW IPEX-Bank is not only supporting the export of green technology from Europe, but is also contributing to global climate and environmental protection.