ISA closes financing for Chilean transmission projects

Interchile, the Chilean subsidiary of Colombia's state transmission group ISA, has recently informed that it has agreed a project financing package of around US$737.5 million with a group of local and international lenders to start construction of two transmission projects it currently owns in Chile.

The syndicated financing package was provided by the following banks: Banco Bilbao Vizcaya Argentaria (BBVA), S.A. New York Branch, Banco del Estado de Chile, New York Branch, Crédit Agricole Corporate and Investment Bank, Natixis, New York Branch, Sumitomo Mitsui Banking Corporation and The Bank Of Tokyo-Mitsubishi Ufj, Ltd..

BBVA was the Lead arranger in the transaction.

Intechile also signed a $67.9 million VAT facility associated to the construction of the projects with BBVA Chile, BancoEstado and Banco BICE.

The loans will finance 70% of the necessary investments for the construction of the Cardones - Polpaico transmission project, the Encuentro - Lagunas transmission project and the construction of the new substations.

The 2x500kV Cardones-Polpaico project seeks to boost the central SIC grid's trunk transmission system by installing a 500kV high-tension, through a double-circuit transmission line.

The Encuentro - Lagunas 174 Km, 220KV double-circuit transmission line will connect the substations of Encuentro and Lagunas on the northern SING grid.