Brazil's national development bank BNDES said Wednesday that it would provide 389 million Brazilian reais ($220 million) to a group composed of Iberdrola and Neoenergia to build five wind farms in the country's northeast.

Spain's Iberdrola -- through its local unit Iberdrola Renovaveis do Brasil -- and Brazil's Neoenergia -- in which Iberdrola holds a stake together with state-run lender Banco do Brasil and its pension fund Previ -- each own half of the five wind farms being built in the northeast, the BNDES said in a statement.

The five farms together will have a total capacity of 138 megawatts, and are expected to cost BRL573.6 million to build, BNDES said.

Four of the wind farms will be built in Rio Grande do Norte state, with the remaining wind farm being built in Bahia state.

Brazil so far has invested more than BRL5 billion to install 1,160 megawatts of wind power, with BRL3.4 billion of that financed through BNDES, the development bank said.

-By Paulo Winterstein, Dow Jones Newswires; 55-11-3544-7073; paulo.winterstein@dowjones.com