GE(NYSE: GE), Centrais Elétricas de Sergipe S.A. (CELSE”) and Goldman Sachs (“GS”) closed a ground-breaking BRL 3.2 billion project financing deal for CELSE’s 1.5 GW Porto de Sergipe I power plant project in the municipality of Barra dos Coqueiros, approximately 10 kilometres from Aracaju, the capital of the state of Sergipe, Brazil. Goldman Sachs issued the BRL 3.2 billion bond, backed by Swiss export credit agency (ECA), SERV, in Brazilian currency (REAL, BRL), a market first for bond issuers and insurers. This is one of the largest project bonds issued in the region and the largest private investment ever made in the state of Sergipe. 

GE is the turnkey contractor constructing the power plant, which will use three GE 7HA gas turbines, as well as steam turbine, heat recovery steam generator and transmission technology. GE will also provide operations, maintenance, repairs and digital solutions. The project meets growing regional energy demand and supports Brazil’s strategy to complement its hydro-based energy system with thermal power, creating a more reliable energy supply during dry seasons. 

Guto Davies, Managing Director - Global ECA Advisory and Execution Leader GE Energy Financial Services, said: “GE has supported the project by securing a landmark financing deal through a leading global investment firm and export credit agency - Goldman Sachs and SERV - in a market first. This is a landmark transaction that brings local currency financing to a strategically important GE project and customer.” 

CELSE has closed an additional BRL 1.3 Billion in project debt, bringing the total financing for Sergipe I to BRL 4.5 Billion. This includes $200 million from International Finance Corporation (IFC) and $288 million from IDB Invest, the arm of the Inter-American Development Bank for private sector investments. 

Eduardo Maranhão, president of CELSE, said: "Securing financing for Sergipe I was a fundamental step in advancing the development of the project. The ability to close this transaction demonstrates CELSE’s ability to meet the World Bank's sustainable energy policies and underscores our commitment to sustainable development and the interests of the local community.” 

Sergipe I was awarded 26 25-year power purchase agreements (PPA) in April 2015 during an auction conducted by the Brazilian government. The PPAs provide for the sale of the project’s entire 1.5GW installed capacity, with delivery of power commencing on January 2020. Upon completion, Sergipe I will account for an estimated 15% of Northeast energy demand in Brazil and will be the largest thermal power plant in Brazil by capacity. 

With an extensive amount of wind and hydro power in Brazil, GE’s 7HA technology will play an important role in enabling a quick response to fluctuations in grid demand and adapting quickly to weather changes.

GE has a longstanding presence in Brazil of 98 years. Today, there are more than 12,000 GE employees in the country based throughout all GE businesses, including 28 production and services sites. Additionally, GE equipment helps power approximately one-third of all energy generated throughout Latin America.