Morales & Besa advised Banco BICE in the financing of the VAT related to the construction of several solar plants

May 31, 2019

Morales & Bes successfully advised Banco BICE on a financing granted to Inversiones Arco 3 SpA to finance the Value Added Tax related to the construction of several solar plants, including those determined at closing located in the Coquimbo, Maule and Bíobío regions, and those to be included as additional projects, pursuant to the terms of the VAT Financing Agreement.

Together with the VAT financing, a senior financing was granted by Natixis and, as consequence, the transaction required a special structure of collateral an intercreditor agreements. Additionally, the VAT financing was not granted to the entities that will receive the VAT refund, but to their holding company, which also required for a different structuring of the transaction. Finally, the VAT financing allows for the financing of VAT from additional solar projects, as long as the requirements provided for in the VAT facility agreement are complied with.

The Morales & Besas’s team involved in this transaction was led by partner Myriam Barahona, along with senior associate Jaime Rosso (tax), and associates Paulo Quinteros, Francisca Estrougo and Ignacio Chomalí.