Recurrent Energy announced today that it has fully received 490 million Brazilian reais (approximately US$100 million) of non-recourse project financing for its 300 MW Ciranda Solar Power Cluster (Ciranda Cluster) in Brazil. Completed in August 2023, Ciranda Cluster was developed by Recurrent Energy, who is now the long-term owner and operator of Ciranda Cluster.
Ciranda Phase I issued a BRL 285 million bond in a private placement with investment funds managed by Vinci Partners (NASDAQ: VINP), a leading alternative investment platform in Brazil, while Ciranda Phase II secured a BRL 205 million facility with Banco Nacional de Desenvolvimento Econômico e Social (BNDES), a Brazil-based state-owned development bank. Both financings are inflation-indexed to the National Consumer Price Index (IPCA), aligning cost of debt with the inflation-indexed operating cash flows of the projects.
Ismael Guerrero, CEO of Recurrent Energy, said, "We are pleased to extend our long-standing partnership with BNDES and reinforce our presence in the Brazilian capital markets. Brazil has established itself as the largest renewable energy market in Latin America, and BNDES's and Vinci's participation in the funding of our solar portfolio represent a vote of confidence in the leadership position we have established in Brazil's renewable energy sector."
Ciranda Cluster is fully operating and powered by Canadian Solar's high efficiency BiHiKu modules. Both Ciranda Phase I and Ciranda Phase II projects won in a private auction held by COPEL Energia, one of the top 10 energy trading companies in Brazil, with a 15-year, inflation-adjusted PPA.
