Latin American clean power developer Atlas Renewable Energy has secured a $67m loan from IDB Invest and DNB Bank to finance construction of the 187MW Jacaranda solar farm in Brazil.
Atlas said the deal marks the first time that a Brazilian solar project has been fully financed in US dollars.
The loan was secured from IDB Invest, including the Clean Technology Fund and the Canadian Climate Fund for the Private Sector in the Americas – Phase Two, together with a participation from DNB Bank.
Jacaranda is located in the municipality of Juazeiro in the state of Bahia.
The plant will generate 440 gigawatt-hours a year of electricity, which is enough to supply power to a city of over 750,000 inhabitants and avoid approximately 35,000 tonnes of CO2 emissions annually, Atlas said.
It has a 15-year power purchase agreement (PPA) with a Brazilian subsidiary of the American material science giant Dow.
This PPA will provide electricity to Aratu, one of the largest production sites Dow has in Brazil.
Atlas Renewable Energy chief executive Carlos Barrera said: “It is an honour to partner with such high-calibre financial institutions and to work once again with IDB Invest and DNB Bank.
“This financing is an industry first and is a great example of Atlas working with our partners to find innovative solutions for our clients that add significant value to their business while providing clean energy.
“We are also extremely proud of the unique diversity programme that we have designed with IDB Invest to push the envelope in promoting gender and racial diversity.
“We look forward to continuing to raise the bar and to structuring unique solutions that provide large-energy consumers with a competitive edge while accelerating the energy transition towards clean energy in Latin America.”
IDB Invest chief of infrastructure and energy Gian Franco Carassale said: “Atlas Renewable Energy is a strategic client of IDB Invest.
“We share many core values including the need to reverse climate change through renewable energy investments and through such investments create better opportunities for women and communities.
“The Jacaranda Solar Power Project is another example of Atlas Renewable Energy’s commitment to these values and IDB Invest’s and DNB Market’s capacity to deliver innovative financing solutions in the region.”