Santander to provide equity financing for wind projects in Chile

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Santander to provide equity financing for wind projects in Chile

Banco Santander will acquire stakes in four Chilean wind developments from U.K.-based Rame Energy. The bank will provide with US$69 million of equity funding for the wind power projects.

Santander Investment Chile Ltda. will invest 80% to 90% of the equity capital for 118MW of projects, while Rame has a call option right to reacquire Santander’s equity upon commencement of the commercial operations. The projects are expected to be operationals by 31 December 215 at the last.

The terms also specify that Santander should be considered first for the equity financing of future projects developed by Rame up until the end of 2016.

This Agreement formally builds on the company’s existing cooperation with Santander, which has seen Santander co-finance Rame’s first two wind projects Raki/Huajache in Chile totalling 15MW. It expects to start putting up the wind turbines of the projects in October and the sites should be operational in the fourth quarter. EKA Chile SA will buy all of the energy they produce for ten years.

Tim Adams, Rame CEO, stated:

This framework agreement with Santander for the equity financing of our next 118 MW of wind projects in Chile represents an important milestone towards our goal of having in excess of 100 MW of power generating capacity in operation in Chile by the end of 2015. The Terms allow us to monetise the true market value of our development activities prior to construction, further enhance our earnings visibility and provide us with a clearly defined and de-risked route to full ownership at completion. We will be working closely with Santander to satisfy the various due diligence requirements and conditions precedent to move to a full contract and shareholders’ agreement on each project as we did with our first two projects, Raki and Huajache, both of which remain on track to become operational in Q4 2014.

Rame Energy is an international energy consultant, engineer and power project developer with a decade of global experience in power generation projects using conventional fuel or renewable energy sources.

List of country news

Country news

  • July 01, 2014

    First Solar gets approval for 369MW PV plant in Chile

    The Environment Agency of Chile (EIS) has approved the construction of a 369 MW solar photovoltaic (PV) park in the northern Antofagasta region. Read more
  • July 01, 2014

    Pattern Energy acquires controlling interest in El Arrayán Wind project in Chile

    Pattern Energy Group Inc. has acquired AEI's 38.5% net ownership interest in the El Arrayán Wind project. Read more
  • July 02, 2014

    First Solar gets financing for Luz del Norte PV plant in Chile

    First Solar, Inc. has received board approval from the Overseas Private Investment Corporation (OPIC), the U.S. Government's development finance institution, and IFC, a member of the World Bank Group, for financing to support construction of the 141MW Luz del Norte solar power plant in Chile's Atacama Desert. Read more
  • July 03, 2014

    EIB backs Chile renewables projects

    The European Investment Bank (EIB) has announced a €150 million framework loan to Banco Santander Chile for financing projects contributing to climate change mitigation, especially large and medium-scale renewable energy schemes. Read more
  • July 07, 2014

    SunEdison closes US$190m project financing for Chilean solar power plant

    SunEdison, Inc. has announced the closing of a US$155 million non-recourse debt financing arrangement to develop a 72.8 MW merchant solar power plant in Chile. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.