The EBRD Board of Directors has approved an equity investment of up to EUR 125 million via capital increase in Iberdrola Renewables Polska Sp. z.o.o. (IBR Polska) and Iberdrola Renovables Magyarország Kft (IBR Magyar), wind farm developing companies operating in Poland and Hungary respectively.

The EBRD equity investment will help IBR Polska and IBR Magyar to implement their development strategies, supporting Poland and Hungary in increasing the volume of green energy generation, a requirement set by the EU.

The project represents the EBRD’s first investment in the Hungarian power sector and the Bank’s first equity participation in Polish wind farms. This investment represents a continuation of the Bank’s cooperation with IBR. In 2008, in a similar transaction, the Bank has acquired 25 per cent in IBR’s subsidiary in Estonia.

The Spanish-based Iberdrola Renovables, S.A. (IBR), the world leading developer in the renewable energy sector, currently used in 23 countries. The two IBR subsidiaries are currently operating five wind farms (four in Poland and one in Hungary), with a total capacity of 211 MW. By the end of 2010 IBR will commission two more wind farms in Hungary and another wind farm in Poland with total additional capacity of 98 MW. (EBRD)