First bond issue for funding wind development approved

Spain's first bond issue for funding wind development has kicked off following the approval of the national financial market regulator, the Comisión Nacional del Mercado de Valores. The EUR 26 million issue will come from Dutch power marketer Nuon to raise 10% of the equity for 240 MW of installed wind capacity in Galicia. Bonds for EUR 7.5 million have already been issued for the 42 MW Monseivane wind plant, online in Lugo province, and the neighbouring 28 MW Celaya development, currently building. The remaining EUR 18.5 million will be issued progressively as the projects obtain final permits, says Tomás Andueza of veteran developer Desarrollos Eólicos (DESA), Nuon's Spanish affiliate. The bonds cover a EUR 26 million loan from regional savings bank Caixa Galicia. Each bond has a value of EUR 500. Earnings are set at 2.75% of annual plant turnover plus an interest on issue value of 0.25% Euribor, the EU's interest rate standard. Caixa Galicia's José Luis Méndez describes the bond financing as "innovative." The bonds will encourage "local participation in development," says Nuon boss Rien van Haperen.