Latin America: Brookfield provides mezzanine financing for Cerro Dominador CSP

18 July 2018 - 12:00 am UTC

A Brookfield affiliate provided a mezzanine financing for the sponsors of the 210MW Cerro Dominador Complex, according to a recent press release.

The financing was done “in order to make the equity contributions required pursuant the senior financing agreement.”

The SPV, whose only owners are EIG Global Energy Partners and Cerro Dominador SpA, received the loan disbursement on 3 July, and the disbursement of this facility also took place that day, Inframation understands.

Advising the SPV was Milbank Tweed (international legal) and Morales y Besa (local legal). Brookfield was advised on the deal by Latham & Watkins (international legal) and Carey & Cía (local legal).

The project was estimated to have a capex of USD 1.5bn, an updated capex estimated has not been disclosed.

It includes a 110MW solar CSP facility and a 100MW solar PV project. It has a PPA agreement awarded in 2014 at a price of USD 114MWh.

The project was initially developed by Abengoa. In 2014 the firm received a USD 255m equity bridge loan from BTG Pactual and Natixis. That financing was restructured as part of the financial close of July 2018.

Other than the mezzanine, EIF received a USD 758m financing from nine institutions: ABN Amro, Deutsche Bank, ICO, Natixis, Santander, Societe Generale (SocGen), BTG Pactual, Commerzbank and KfW. The loan was priced at 275 basis points over Libor, as previously reported.

An international insurance company also provided USD 100m for the project.

The contractors of the project are Abengoa and Acciona. Acciona holds 51% of the EPC consortium, according to a company press release.

The solar PV part of the project has been under operations since February 2018.

Brookfield