Atlas receives credit of R$1,1 billion to finance 438 MW PV project

A Atlas Renewable Energy, an international renewable energy company, announced that got credit of US＄210 million (around R$1,1 billion) Of the BNDES (National Bank for Economic and Social Development) to finance the Boa Sorte solar energy project.

According to the company, this is the first time that the banking institution has granted a loan indexed to the US dollar for a renewable project. “We hope that this will be the first of many operations in which BNDES can finance companies using the dollar as a reference”, declared Solange Paiva Vieira, director of Infrastructure Credit.

The Boa Sorte complex will be built in Paracatu, in the state of Minas Gerais, and will provide clean energy to a client in the industrial sector under a 20-year PPA (power purchase agreement).

The plant will have installed capacity of 438 MW, which will generate 815 GWh annually – offsetting more than 61.000 tons of CO2 emissions per year. In total, more than 778 thousand photovoltaic panels. The expected date for the start of commercial operations is January 2025.

The project is also notable for its new contract structure through a joint venture between Atlas, Hydro Rein and the Customer observing a self-production structure to supply 12% of the Customer's annual energy consumption.

job creation

Additionally, the plant will continue to advance Atlas' social responsibility strategy towards nearby communities by providing jobs for the local workforce — more than 2.000 people are expected to be hired during construction.

Atlas will also implement the “we are all part of the same energy” program to train local women in technical skills, and will mobilize its contractors to reduce the gender gap in factory construction and promote new capabilities and skills within the local female workforce. .

Importance of the project

According to Atlas, this financing is of great importance for the Brazilian market and for the renewable energy industry in the country, as it sets a new precedent for project financing in Brazil, making it available for photovoltaic plants with PPAS indexed to the dollar. American, specifically permitted for large Brazilian companies that are exporters.

In the company's view, the business is also particularly significant due to the new regulation of Law No. 14.286/2021, which allows exporters to enter into PPAs in dollars with companies holding authorizations to provide public services, as is the case with energy traders.

“This is Atlas' third US dollar-indexed transaction in Brazil to finance renewable energy projects that will serve large electricity consumers in the country. It is worth mentioning that this is particularly unique financing, as it was granted by a public bank”, said Luis Pita, general manager of Atlas Renewable Energy in the country.

“The fact that BNDES granted this loan is proof of the growing importance of renewable energy globally and in Brazil, as well as the significant role that companies like Atlas are playing in driving this energy transition. We hope that this financing will facilitate new dollar incentives for renewable projects in the country and help drive the transition to a more sustainable energy future”, added the executive.

“With the entry into force of Law 14.286 / 21, known as the Foreign Exchange Law, as of December 31, 2022, agents in the electricity sector will be able to sell energy through PPAs linked to the dollar”, commented Daniel Barreto, superintendent of the Energy Area at BNDES.

According to him, this new framework allows electro-intensive exporting companies to reduce their risk to exchange rate variations, given that their products are sold in dollars and the electrical energy consumed, being an important input for the production of goods, can also be purchased from prices linked to the dollar.

“This new model requires the feasibility of financing also linked to the dollar, and anticipating this new reality, the BNDES, through fundraising carried out abroad, made the financing operation possible for the Boa Sorte solar project, from Atlas Group”, he added

“We are very excited to partner with BNDES on its first dollar-indexed financing for renewable energy. Having financing indexed to the dollar is not only in the interest of investors, but a crucial prerequisite for the Boa Sorte project to be viable. The support from BNDES attests to the importance of the Boa Sorte project, supporting Hydro REIN’s industrial decarbonization mission”, said Marcela Jacob, Head of Hydro Rein Brasil.