The European Bank for Reconstruction and Development (EBRD) and International Finance (IFC) are set to provide a €215m loan to the 158MW Čibuk 1 windfarm currently being developed in Serbia.
Under the arrangement, both EBRD and IFC will provide €107.7m to the project.
The EBRD fund will comprise a syndicated loan, with €55m syndicated to Erste Bank, Green for Growth Fund, UniCredit, and Banca Intesa under an A/B loan structure.
IFC’s share of the loan will be funded through its Managed Co-Lending Portfolio Programme and syndicated B loans.
EBRD Power and Energy Utilities director Harry Boyd-Carpenter said: “The Čibuk windfarm is a breakthrough for Serbia as the country works to meet its commitment to produce 27% of domestic power needs from renewable energy sources by 2020.
“The EBRD has worked closely with the government to develop and refine the regulatory framework for the sector and these efforts have now unlocked job-generating foreign investment and the first wave of renewable-energy projects.”
The Čibuk 1 windfarm is situated 50km north-east of the Serbian capital Belgrade and is being developed by Vetroelektrane Balkana, which is owned by Tesla Wind.
When completed, the €300 farm will feature 57 General Electric turbines and will span across an area of around 40km².
The facility is expected to be connected to the grid by the first half of 2019. It will be able to produce enough electricity to power around 113,000 households and to minimise carbon dioxide emissions by more than 370,000t.
During construction, the Čibuk 1 project is expected to create 400 jobs.