SunEdison secures $160 million financing for solar project in Chile

SunEdison has closed on the finance and started construction of its 110 MW DC Quilapilun solar power plant in Chile.

The total project investment is estimated at US$256 million.

The company secured a US$160 million long-term, non-recourse debt financing arrangement for the project with CorpBanca, one of the largest commercial banks in Chile, and DNB, the Norwegian financial services group. The financing will be used to fund the development, construction, and operation of the plant.

CorpBanca and DNB acted as mandated lead arrangers, underwriters and hedge providers of the project financing. CorpBanca, the administrative and onshore collateral agent, will also provide a Chilean Peso VAT facility.

To be located in Colina in Chile's Santiago metropolitan region, the Quilapilun solar photovoltaic (PV) project will have a total generating capacity of 110 MW DC. The project is expected to be the largest solar project in Latin America.

The plant is expected to generate 242 GWh of electricity per year, while offsetting the emission of over 125,000 tons of CO2 annually.

The energy generated will supply the Sistema Interconectado Central (SIC) grid as part of a 570 GWh contract with the Chilean National Energy Commission.

Construction is currently underway with interconnection of the site scheduled for Q1 2016.

Once construction is complete, operation and maintenance of the power plant will be performed by SunEdison Services. TerraForm Power, a subsidiary of SunEdison, intends to acquire the solar power plant once grid connection is established.

Carlos Barrera, SunEdison's Latin America Vice President, has commented:

"This project is our first solar plant in the Metropolitan Region, and further advances our position as a renewable energy leader in Chile. Solar energy has become cost competitive with other energy generation sources in the country. With solar, we are able to supply regulated market consumers with clean energy at lower prices than they pay now.

SunEdison is pleased to have the support of two top financial institutions, CorpBanca and DNB, on this project. Our strong relationships with institutions like these will help us deliver cost effective solar energy as we grow the industry in Chile."