US insurers identified as bond investors for Chile project

06 October 2017 - 12:00 am UTC

Eight US insurers and two from Israel are bondholders in a USD 415m private placement to finance two wind farms in Chile, Inframation understands.

The project closed on September 28. Proceeds from the bond offer will go towards refinancing the 185MW San Juan de Chañaral wind project and the 46MW Totoral wind farm, as Inframation previously reported.

Lifecos have a growing interest in the Latin American market, said a source familiar. Deal flow has to date been stemmed by the legal and regulatory environment, but should increase in investment grade countries such as Chile, Peru, Colombia and Mexico, the source added. 

The 4 (a) (2) bond was issued through a private placement and rated BBB- by S&P Global. 

The USD-denominated, senior secured bonds have a fixed 5.35% interest rate, and were issued in the New York market. The maturity date is 2033.

Norton Rose Fulbright was the legal advisor to the funders, as well as Winston & Strawn and Carey & Cia. Greenberg Traurig and Barros Silva Varela Vigil advised the SPV.

Jefferies was the financial advisor on the deal, as well as co-placement agent with SMBC.

The ten insurance companies and two further investment firms are as follows:

  • Allianz (through its North American subsidiary)
  • American Equity Investment Life Insurance Company
  • American International Group (AIG), The United States Life Insurance Company of New York, American General Life Insurance Company
  • Clifton Park Capital Management
  • CM Life Insurance Company
  • Ensign Peak Advisors
  • Guardian Life Insurance Company of America
  • Massachusetts Mutual Life Insurance Company (MassMutual)
  • Migdal Insurance
  • Migdal Makefet
  • Teachers Insurance and Annuity Association (TIAA)
  • Variable Annuity Life Insurance Company (VALIC)