Morales & Besa advises syndicate of banks to finance solar photovoltaic project “Santiago Solar”

October 6, 2016

Morales & Besa successfully advised Credit Agricole Corporate and Investment Bank, Sumitomo Mitsui Banking Corporation and DNB Bank ASA as creditors to the finance construction of solar photovoltaic project “Santiago Solar” and BCI as creditor financing of VAT and issuing ballots warranty.

The operation consisted of financing Santiago Solar S.A. for the construction of photovoltaic solar project “Santiago Solar” with 115 MW installed capacity, located in the metropolitan area, as well as financing of the VAT associated with the construction and two loans granted to Andean Mining & Energy Corporate SpA and EDF EN Chile Holding SpA, Santiago Solar SA shareholders, to issue bank guarantees to be delivered to a counterparty of a relevant contract.

The transaction was highly complex, as it involved a great deal of financial planning so that documents and model project financing were consistent with the terms of the supply contracts energy distribution companies, obtained by Santiago Solar for the supply tender 2014. The advice also included simultaneously granting loans for various purposes and various creditors, demanding strict coordination between financial and legal teams of all parties involved. The operation involved a total of US $ 112,602,337 to finance the construction; US $ 6,000,000 for IVA and US $ 1,000,000 for the issuance of bank guarantees.

The team Morales & Besa who participated in the operation was formed by Partners José Miguel Carvajal, Carlos Silva and Myriam Barahona; with Senior Associates Sebastián Leyton, Ignacio Menchaca, Ignacio Delpino amd Associates Aldo Cardinali, Isabel Cabeza, María Francisca Estrougo, Nicolás Zegers, Maria Paz Charpentier and Pedro Pablo Valenzuela.