One of the Largest Solar PV Power Plants in Latin America Secures Financing

SunEdison Solar PV Chile

SunEdison, Inc. (NYSE:SUNE), a global solar technology manufacturer and provider of solar energy services, announced  the closing of a $130 million USD non-recourse debt financing arrangement with CorpBanca and BBVA.  The debt proceeds will be used to fund construction of a 69.5 megawatt (MW) solar PV power plant located in Chile.  The power plant will provide energy under a 20-year Power Purchase Agreement (PPA) to Minera Los Pelambres, a subsidiary of Antofagasta Minerals, the largest private mining group in Chile and one of the largest copper producers in the world.

CorpBanca acted as Underwriter and Mandated Lead Arranger, and also participates as Administrative and Onshore Collateral Agent, and BBVA acted as Mandated Lead arranger. Both of the lenders are also providing a local Chilean Peso VAT facility for the equivalent of $30 million USD. This deal represents the first time that solely commercial banks are participating in the senior debt facility for a solar project in Chile.

Interconnection of the 69.5 MW Javiera plant is expected to take place during the first quarter of 2015. Once completed, the plant will become one of the largest solar PV power plants in Latin America.

TerraForm Power, Inc. (NASDAQ:TERP), an indirect subsidiary of SunEdison and owner and operator of solar power plants, intends to execute its call right on Javiera in 2015 after the project is interconnected.

The Javiera transaction demonstrates further progress on the development, financing, and installation of power projects that TerraForm Power has available for purchase from SunEdison’s power asset development engine. Furthermore, SunEdison will operate the plant under a long-term operation and management (O&M) agreement.

Jose Perez, President of SunEdison for Europe, Middle East, Africa and Latin America, stated, “We are delighted to expand our collaboration with world-class financial institutions such as CorpBanca and BBVA. This project is further proof of the ability of solar photovoltaic energy to compete with other traditional energy sources in Chile, and demonstrates how clean energy technologies can contribute to meet the growing energy demand from the country’s mining industry. This energy solution model is replicable in other industrial sectors and in other countries across the region.”

“SunEdison and TerraForm Power have a strong alliance that is continuing to grow and provide trust to clients and banks and enable global growth,” Perez added.

Rodrigo Oyarzo Brncic, Managing Director, Wholesale & Corporate Banking Division of CorpBanca, stated, “This year, we have seen how renewable energy has made great strides in our country’s development, and CorpBanca has become a permanent partner in energy projects. We look forward to continuing to support the development of various business projects, especially those related to infrastructure and energy.”

Carlos Lopez Rabadan, Head of Project Finance of BBVA in Chile, said, “We are thrilled to see that the renewables market in Chile is taking off, as it sees industrial partners signing bankable PPAs, as well as commercial banks financing projects with relevant partners and attractive prices.

“We are proud to bring our broad experience in the solar sector accumulated during the last decade in Europe and North America to the Latin American market, working with capable partners like SunEdison.”

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This post was prepared by Solar Thermal Magazine staff.