Morales & Besa advised SMBC and Banco Santander – Chile in the financing of Cabo Leones III

June 6, 2019

Morales & Besa successfully advised the lenders for the financing of the Cabo Leones III wind project, consisting of a wind farm with a capacity of 78.1 MW, located in the Atacama Region, owned by Ibereólica Renovables, which consisted of financing for the construction and operation, issuance of letters of credit and VAT financing associated to the construction of the project.

The transaction required the coordination for closing the granting of two financing simultaneously: the construction financing and VAT financing, which required a complex system of collateral and intercreditor agreements.

Additionally, during the process of negotiation of the financing, the project was subject to a procedure by the Superintendency of the Environment. The sanctioning process was associated with an alleged fractionation of several wind and transmission projects located in the area. However, Ibereólica became a party to the process and presented all the necessary documents and reasons to dismiss the charges, which was analyzed prior to closing the financing. In short, the project was acquitted of the charges.

The team involved in the financing for the construction and operation and the issuance of letters of credit was led by partner José Miguel Carvajal along with:

Senior associates:

  • Ignacio Menchaca (Financing).
  • Sebastian Leyton (Energy and Project agreements).
  • Paloma Infante (Environment and permits).
  • James Channing (Construction).


  • María Francisca Estrougo (Financing).
  • Sebastián Nieme (Financing).
  • Alfonso de Urruticoechea (Environment and permits).
  • Augusta Quiñones (Construction).
  • Gabriela Leaño (Energy and Project agreements).

As to the team involved with the VAT financing, it was led by partner Myriam Barahona along with senior associate Jaime Rosso (tax), and associates Paulo Quinteros and Ignacio Chomalí.

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