LAP issues USD-412m bond to refinance wind in Chile

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Latin America Power Ltda (LAP) has issued US$412 million (€347.7 million) in bonds to refinance two wind farm projects located in Chile, the 184.8 MW San Juan and the 46 MW Totoral wind facilities. 

The notes will have a 16-year final maturity and an approximately 11-year average life, with a coupon of 5.35%.

LAP owns the two windfarms whose revenues are mainly derived from power purchase agreements (PPAs). The details of the two wind farms are as follows:

• San Juan is a 184.8 megawatt (MW) facility located in Vallenar, Chile (about 650 kilometers north of Santiago), consisting of 56 Vestas V117-3.3 MW wind turbines, which started operating in the first quarter of 2017.
• Totoral is a 46.0 MW facility located in Canela, Chile (about 300 kilometers north of Santiago), consisting of 23 Vestas V90-2.2 MW wind turbines, which have been operating since 2010.

Both wind farms sell power into the Central Interconnected Electric System of Chile.

The companies, which acted as initial purchasers are: American General Life Insurance Company; The Variable Annuity Life Insurance Company; Allianz Life Insurance Company of North America; C. M. Life Insurance Company; The Guardian Life Insurance Company of America; Massachusetts Mutual Life Insurance Company; American Equity Investment Life Insurance Company; The United States Life Insurance Company in the City of New York; Teachers Insurance and Annuity Association of America; Migdal Insurance Company; Migdal Makefet Pension and Provident Funds; Ensign Peak Advisors; American General Life Insurance Company and Clifton Park Capital Management.

Barros, Silva, Varela & Vigil, Norton Rose Fulbright and Winston & Strawn have advised the investors with the transaction.

We have lately informed about other renewable projects in Chile:

• 3 MW Valle de la Luna solar PV plant in Lampa community
• 1000 MW Bundang-Gu Calama solar complex in Antofagasta region
• 246.6 MW El Romero Solar PV plant
• 607 MW Horizonte wind farm in Taltal
• 3 MW Santa Laura solar PV park in Chile
• 3 MW Amaparo del Sol solar PV project in Chile
• 9 MW Marchigue solar project in O'Higgins
• 48 MW Cerro Pabellón geothermal plant in Atacama Desert
• 110 MW Cerro Dominador solar CSP project in Atacama desert, Chile