Erste Bank Serbia, MK-Fintel Wind unit sign 11.7 mln euro loan deal

Erste Bank Serbia said on Tuesday it has signed with local wind park developer Vetropark Kula, a unit of Italian-Serbian joint venture MK-Fintel Wind, a 11.7 million euro ($15.9 million) credit agreement.

The funds will finance the Kula wind power plant that is planned to have a capacity of 9.9 megawatts (MW) and annual output of around 25 gigawatt-hours, Erste Bank Serbia said in a statement.

The bank and MK-Fintel Wind are also considering for financing other wind power projects, the president of Erste Bank Serbia's executive board, Slavko Caric, said.

Erste Bank Serbia has so far provided close to 35 million euro in funding for projects that use renewable energy sources. That covers 17 small hydro power plants (SHPPs), two biogas plants, solar power plants, as well as other projects. Ten of the SHPPs have already begun operation.

MK Fintel Wind is a 46/54 joint venture between Serbia’s MK Group and Italy's Fintel Energia Group. It was set up in 2008 to invest in green energy projects in Serbia and the region.

In December, Fintel Energia Group said MK-Fintel Wind had secured location permits in Serbia for the RAM, Dunav 1 and Dunav 2 wind farms with a combined installed capacity of 30 MW.

($=0.7359 euro)

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