SunEdison, Corpbanca and BBVA Financed $130M to Construct a 69.5MW Solar Project in Chile

published: 2014-10-30 14:03 | editor: | category: News

SunEdison closed a US$130 million non-recourse debt financing arrangement with CorpBanca and BBVA. The debt proceeds will be used to fund construction of a 69.5 MW solar power plant called “Javiera” in Chile. The power plant will provide energy under a 20-year Power Purchase Agreement (PPA) to Minera Los Pelambres, a subsidiary of Antofagasta Minerals.

CorpBanca acted as Underwriter and Mandated Lead Arranger, and also participates as Administrative and Onshore Collateral Agent, and BBVA acted as Mandated Lead arranger. Both of the lenders are also providing a local Chilean Peso VAT facility for the equivalent of US$30 million. This deal represents the first time that solely commercial banks are participating in the senior debt facility for a solar project in Chile.

TerraForm Power, an indirect subsidiary of SunEdison and owner and operator of solar power plants, intends to execute its call right on Javiera in 2015 after the project is interconnected.

Jose Perez, President of SunEdison for Europe, Middle East, Africa and Latin America, stated, "This project is further proof of the ability of solar PV energy to compete with other traditional energy sources in Chile, and demonstrates how clean energy technologies can contribute to meet the growing energy demand from the country's mining industry. "

"SunEdison and TerraForm Power have a strong alliance that is continuing to grow and provide trust to clients and banks and enable global growth," Perez added.

Rodrigo Oyarzo Brncic, Managing Director, Wholesale & Corporate Banking Division of CorpBanca, stated, "This year, we have seen how renewable energy has made great strides in our country's development, and CorpBanca has become a permanent partner in energy projects. We look forward to continuing to support the development of various business projects, especially those related to infrastructure and energy."

Carlos Lopez Rabadan, Head of Project Finance of BBVA in Chile, said, "We are proud to bring our broad experience in the solar sector accumulated during the last decade in Europe and North America to the Latin American market, working with capable partners like SunEdison."

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