Rabbalshede Kraft nabs bank funding for 101 MW of wind projects

Jul 3, 2013 - Swedish lenders Swedbank (STO:SWED-A) and SEB (STO:SEB-A) will provide funding to Rabbalshede Kraft AB to help build 101 MW of local wind farms, the developer said today without specifying the size of the investment.

The money will go for financing the construction of the Arjang NV, Arjang SV and Skaverod/Guserod wind farms, which will have a total of 33 turbines to be provided by Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS). The three facilities require a combined investment of SEK 1.2 billion (USD 178.5m/EUR 137.8m), of which a third will be shareholders' equity.

Construction of the facilities, which are expected to produce 289 GWh of power a year, is due to start this month and to be completed by late 2014.

Last month, Rabbalshede Kraft collected SEK 171.6 million in a private placement with Luxembourg-based private industrial firm Manor Investment SA and announced plans for a preferential rights issue aimed at raising SEK 386.4 million. Both transactions are intended to fund the equity requirement for the wind farms' construction.

(SEK 1.0 = USD 0.149/EUR 0.115)

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