Invenergy Issues Bonds for Campo Palomas Wind Farm in Uruguay
Invenergy has announced that its 70 MW Campo Palomas wind project, located in the Salto Department of Uruguay, issued investment-grade rated project bonds (Baa3 / Moody’s) for approximately US$135.8 million in the US Private Placement Market.
Campo Palomas completed construction and began commercial operations earlier this year. The facility generates power from 35 Vestas V110 - 2.0 MW wind turbines which is delivered to the country’s grid under an agreement with Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE), the Uruguayan state-owned utility. The proceeds of the project bond issuance will be used to refinance the existing construction loan.
Meghan Schultz, Senior Vice President of Structured Finance at Invenergy, said:
“We are excited to announce commercial operations for Campo Palomas, which expands our portfolio to Uruguay and deepens our presence in Latin America. We are very pleased to have executed a noteworthy investment-grade transaction for a renewable project and to see it well received by the market and oversubscribed.”
The issuance is under an innovative A/B Bond structure involving a capital markets solution under the umbrella of the Inter-American Investment Corporation (IIC), the private sector arm of the IDB Group. The deal was structured and arranged by DNB Markets, Inc. and the IIC, and was marketed by DNB Markets, Inc. as Sole Placement Agent. The project bond also received a green bond certification from DNV-GL.
Emilio Fabbrizzi, Head of Project Finance Latin America at DNB Markets Inc, said:
“This innovative structure of issuing a project bond under the IIC umbrella, the overall credit quality of the country and the project were instrumental in attracting investors for this successful issuance.”
Gian Franco Carassale, Lead Investment Officer at the IIC, said:
“We are excited to continue to use the B-Bond, a product developed by the IDB Group, to mobilize institutional investors to Latin America and the Caribbean.”
