Morales & Besa advised Banco Security in financing a portfolio of power generation projects of Cap Vert Energie.

January 11, 2018

Morales & Besa successfully advised Banco Security on the financing of construction and value added tax (“VAT”) of a portfolio of 11 existing and future solar generation projects of Cap Vert Energie, located in the Fifth, Sixth and Metropolitan Regions of Chile. All the projects in the portfolio are small photovoltaic power plants under a special legal regime called “pequeños medios de generación distribuida” or “PMGD”.

The advice included drafting and negotiation of a Master Financing Agreement for an estimated maximum amount of up to USD $ 29,500,000 for the construction tranche, and the equivalent in Chilean pesos of up to USD $7,500,000 for the VAT tranche. Such master agreement set forth the terms and conditions required for the financing of the existing and future projects of the portfolio, as well as other conditions and approvals for the replacement of future projects. The advised also included drafting and negotiation of all the financing documents for 3 of the 11 projects of the portfolio, all of them in operation phase and located in the Metropolitan Region, and the analysis of project contracts and other project information from a tax perspective, for purposes of determining the feasibility of an early reimbursement of the VAT related to the construction of such projects.

Morales & Besa team involved in this transaction was formed by the partners Carlos Silva and Francisca Pérez, with the participation of the associates Javier Balbontín, Pedro Pablo Valenzuela, Jaime Rosso, Rosario Arriagada, Nicolás Zegers, Christian Canet and Carlos Espinoza.