Renova to use BNDES funds to support projects

Jun 26, 2012 - Brazilian renewable energy developer Renova Energia (SAO:RNEW11), which will receive a significant financial support from the Brazilian National Social and Economic Development Bank (BNDES), will use the money for ongoing and future wind, solar and small-scale hydroelectric projects.
Yesterday, the company's controller, Brazilian energy distributor Light (SAO:LIGT3), sent a note to the market in which it unveils that BNDES has committed its investment arm BNDESPar to buy at least BRL 250 million (USD 120.5m/EUR 96.5m) worth of Renova shares.
The operation will be carried out through a capital increase of BRL 314.7 million, in which the remaining shareholders in Renova, Light and the funds RR and InfraBrasil, may also participate.
BNDES, apart from spending BRL 250 million, may also purchase more shares if there are ones outstanding from the capital increase. The price per share is BRL 9.33.
Under the agreement between BNDES and Renova, BNDESPar may appoint a member of the board of directors of the company.
Renova, created in 2001, has three small-scale hydroelectric plants, with 48.1 MW installed capacity in Bahia state, and 29 wind parks contracted at auctions organised by the Brazilian government.
(BRL 1 = USD 0.482/EUR 0.386)

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