Actis-backed power producer Atlas Renewable Energy has sold the largest solar-backed bond in Latin America to date, for approximately USD 250m, said two sources briefed on the situation.
The 4(a)(2) bond carries a 17-year tenor and obtained an investment grade rating from an undisclosed agency.
Additionally, ESG and Corporate Governance research and ratings firm Sustainalytics granted a green bond rating to the instrument.
This is also the first time that bondholders take on construction risk as part of a structure to finance a greenfield solar project.
The sponsor will use a portion of proceeds to fund construction of its 244 MW Sol del Desierto solar project, in addition to refinancing debt associated with its 69.5 MWp Javiera Solar park in Chile.
The notes will be backed by cash flow from two power purchase agreements (PPA). The SPV behind Javiera Solar park has a 20-year PPA signed with Chilean miner Minera Los Pelambres, a subsidiary of Antofagasta Minerals, that started in 2015.