Ibereolica and France’s EDF EN sign financing for wind farm in Chile

EDF Energies Nouvelles and Spanish energy firm Ibereolica have closed financing for the 115-MW Cabo Leones I, a wind energy plant and associated power transmission facilities in the Atacama region of northern coastal Chile.

The financing package, consisting on US$140 million of debt, has been arranged with Japan's SMBC, Credit Agricole and Norway's DNB. 

The Cabo Leones I Wind Project, a 115.5-megawatt alternating current (AC) power plant, substation and interconnection line, consists of a complex onshore and offshore security structure that will benefit from offtake agreements with 25 distribution companies under long-term PPAs. Spanish Gamesa will supply the wind turbines for the facility.  The total investment for the project is estimated at US$200 million.

Milbank, Tweed, Hadley & McCloy LLP has advised the international lenders arranging the funding commitments.

Roland Estevez, one of Milbank's team leader for the project, said:

 “Latin America is at the forefront of the renewables surge and the Chilean market has been happy to take the lead.  As Mexico, Colombia and other Latin American nations continue to expand into the sector, it is clear that the financial technology developed with the lessons learned in Chile will help pave the way. We’re pleased to advise the financial institutions on such a groundbreaking project and it should serve as a reflection of what can be accomplished when international Sponsors and Lenders combine efforts to structure complex products.  With cost curves continuing to drop, demand for renewables has proven it is here to stay.”