French independent power producer Total Eren has closed $138m financing for its 50MW Malaspina wind farm in southern Argentina.
KfW Ipex-Bank and the Dutch development bank Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) financed the project.
The loan documentation was signed in December 2018, with the transaction closing in January 2019.
Construction is scheduled for completion during the third quarter of 2019.
The wind farm will be equipped with 14 Senvion 3.6M114 wind turbines.
The German manufacturer will also provide maintenance and servicing for the duration of the loan term, which corresponds to 15 years upon commissioning.
Malaspina is located in Chubut, one of the five Patagonian provinces on the Atlantic coast and where average wind speeds can exceed 10 metres per second.
The purchasing of electricity is secured via a US dollar-based 20-year power purchase agreement with CAMMESA, the partially state-owned operator on the Argentinian electricity market.
KfW Ipex-Bank is contributing a tranche of around $64m for the 50.4MW wind farm, 95% of which is covered by Euler Hermes. FMO is providing $40m.
The financing provided by KfW IPEX-Bank will be used for the import of technology and equipment, which will be used for the construction of the project.
Law firm Watson Farley & Williams advised FMO and KfW Ipex-Bank.