The sponsor of the 210MW Cerro Dominador solar project in Chile is securing USD 638m in financing from six international banks, according to three sources familiar.
The sources said BBVA, Deutsche Bank, Intesa, Natixis, Santander and Société Générale are serving as mandated lead arrangers for a seven-year miniperm loan supporting the EIG-backed project. They added that the loan package is now being considered by the banks’ credit committees, and that financial close is expected by the end of 2017.
Each of the banks will hold one-sixth of the international bank tranche. Syndication meetings are slated to take place in Europe, New York and Chile in the next 10 days.
The Chilean economic development agency Corfo and Germany’s KfW will participate in a USD 112m local bank tranche, as reported. BTG Pactual is arranging the Corfo tranche.
The aggregate USD 750m in debt will be used to finance a portion of the project’s roughly USD 1.5bn total cost, including investments made to date.
The project includes a 100MW photovoltaic facility, and a 110MW thermal solar facility located in the Atacama desert region. It is backed by a 15-year power purchase agreement at a price of USD 114 per MWh starting in January 2019.
The thermal solar portion of the project is 60% complete. Acciona and Abengoa are co-EPC contractors for the project, while Santander and BBVA are providing a VAT facility.
Milbank is advising EIG. Clifford Chance is advising the international lenders.
Barros & Errázuriz is the lenders’ lawyer in Chile. Morales & Besa is advising the sponsors.
Astris is financial advisor, and Natixis is the coordinating bank for the international tranche.
Abengoa in 2014 received a bridge loan from BTG Pactual and Natixis. EIG assumed control of the project at the end of 2016.