Corporacion America Gets $176 Million Loan to Build Wind Farm

Apr 30, 2014 11:04 pm ET

April 30 (Bloomberg) -- Eduardo Eurnekian’s Corporacion America got an $176 million loan to complete two wind farms in Uruguay from a group of lenders led by the Inter-American Development Bank.

“This is the first step we are taking into the wind farm area and we are pleased to receive support from multilateral banks,” Hugo Eurnekian, Eduardo’s nephew and the head of Corporacion America’s energy unit, said in a phone interview from Buenos Aires today. “We plan to replicate soon these projects in the Argentine Patagonia.”

Corporacion America, the world’s largest private airport operator by number of facilities, is diversifying into energy and technology. The closely held company expects to sell shares in the units, run by 81-year-old billionaire Eduardo Eurnekian’s nephews, to the public as early as next year.

The Carape I and II wind farms are located near Maldonado, Uruguay, and are expected to begin operating in the first quarter of 2015. The projects will cost about $211 million and have total capacity of 90 megawatts. The company will sell the power at an average rate of $80 a megawatt-hour, “a very appealing tariff,” Eurnekian said.

Joining the Inter-American bank in the loan is Banco de la Republica Oriental del Uruguay and the International Finance Corp. The facility includes 7 percent annual interest on average for a senior $156 million 18-year loan and a subordinated $20 million loan, and Corporacion America got the first $80 million today, Eurnekian said.