Morales & Besa advised Banco Santander-Chile as lender under the VAT facility of two wind farms

August 24, 2017

Morales & Besa successfully advised Banco Santander-Chile in the operation of financing the Value Added Tax associated with the construction of the Central Sarco and the Central Aurora. The two wind farms will be built in the regions of Atacama and Los Lagos, Chile, with an approximate capacity of 129 MW for the Aurora Central and 170 MW for the Central Sarco.

Both projects are indirectly owned by Aela Energía S.A., a company owned by the Actis Investment Fund and Mainstream Renewable Power. In the electricity tender of 2016, Aela Energía SA was awarded. Electricity supply contracts (PPAs) for approximately 1000 MW, corresponding to 30% of the total bid.

The transaction meant a long negotiation between the creditors of construction financing and the VAT creditor, in relation to the latter’s rights on the guarantees constituted in favor of the senior creditors and on the flows of the project.

The team at Morales & Besa was led by partners Myriam Barahona and Francisca Pérez, and associates Paulo Quinteros, María Francisca Estrougo, Gonzalo Machuca and Jaime Rosso.