Morales & Besa advised senior and VAT lenders for the financing of “Huemul Portfolio” by Mainstream Renewable Power

August 25, 2020

Morales & Besa successfully advised a consortium of banks formed by IDB Invest, KfW IPEX-Bank, DNB, CaixaBank y MUFG, as lenders, for the Senior financing of Huemul Portfolio, owned by Huemul Energía SpA, subisdary of Mainstream Renewable Power, consisting of 5 renewable energy projects with a combined total capacity of 630 MW.

The portfolio of projects consist of the Ckani, Llanos del Viento and Puelche Sur wind farms, the first two located in the Antofagasta Region and the last one in the Los Lagos Region, and the Pampa Tigre and Valle Escondido photovoltaic plants, located in the Antofagasta and Atacama Regions, respectively.

The operation required the performance of a legal due diligence process and the coordination for closing the granting of two financing simultaneously: the senior financing and VAT financing (granted by Banco Santander-Chile), which required a complex system of collateral and intercreditor agreements.

The operation had the participation of 5 banks from different parts of the world, in addition to Banco Santander-Chile in its capacity as VAT Financing, and entailed the performance of legal and technical due diligence projects and financing matters regarding the 5 projects that make up the Portfolio Huemul.

Huemul Portfolio is the second phase of the 1.3 gigawatt “Andes Renovables” wind and solar power generation platform in Chile, one of Latin American’s biggest wind and solar generation platforms.

Is one of the largest renewable energy debt financing deals undertaken in the world this year. All in the context of the Covid-19 pandemic

The projects included into the Huemul Portfolio will generate enough sustainable electricity to power 781,000 Chilean homes and will displace 744,200 metric tonnes of CO2 each year.

Senior financing was led by partner José Miguel Carvajal. The team was composed by director Paloma Infante, senior associates James Channing and Juan Carlos Valdivieso; associates Bernardo Mora, Manuel José Eyzaguirre, Giancarlo Camillieri, Sebastián Nieme, María Jesús Venegas and María Victoria Alonso.

VAT financing was led by partner Myriam Barahona. The team was composed by Ignacio Chomalí, Camila Venegas, Santiago Martínez, Gonzalo Machuca and Constanza Araya.

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