Morales & Besa advised EIG Global Energy Partners on financing of the first concentration solar plant in Latin America
Morales & Besa adviced to EIG Global Energy Partners and its Chilean subsidiaries Cerro Dominador CSP S.A., Cerro Dominador PV S.A. and Atacama Generación Chile S.A. (the first subsidiary as borrower) in the project finance of the Cerro Dominador CSP (110 MW) and PV (100 MW) power plants. Cerro Dominador CSP will be the first concentration solar plant in Latin America, which involves a novel technology.
The output of the power plants has been contracted with Chilean distribution companies, through PPAs awarded to Atacama Generación Chile S.A. in the 2014 supply tender, at a price of US$ 114/MWh.
The project financing, involves several facilities, including a senior financing, VAT financing and a separate facility to be backed by Banco BTG Pactual S.A.
The syndicate of Senior Lenders is formed by Natixis, New York Branch, Banco Santander S.A., Deutsche Bank Securities Inc., Deutsche Bank AG, New York Branch, Deutsche Bank AG, London Branch, Société Générale, ABN AMRO Bank N.V., Commerzbank AG, New York Branch, among others. The VAT financing for the construction was provided by Banco Santander Chile S.A.
The M&B team has been involved in this transaction since 2015, when EIG originally acquired a 55% stake in the Cerro Dominador projects from Abengoa. However, due to the subsequent Abengoa insolvency proceedings between October 2015 and October 2016, both projects became wholly owned by EIG which continued with the development and restructuring of the same for financing. Cerro Dominador CSP S.A. and Cerro Dominador PV S.A. had prior bridge loans with BTG and Natixis, respectively, which had to be restructured as part of the senior financing. This final period was particularly demanding, since it implied the renegotiation of several project documents.
Morales & Besa team involved in this transaction was formed by partners Eugenio Besa and Francisca Pérez with the participation of senior associates Sebastian Leyton, Lorena Barrientos, and Ignacio Menchaca and the associates Verónica Vergara, Gabriela Leaño, José Manuel Llamazales, Sebastián Nieme, Manuel José Eyzaguirre, Javiera Veloso and Christian Canet.