Corpbanca and BBVA finance SunEdison’s solar power project in Chile

SunEdison, Inc. has announced the closing of a US$130 million non-recourse debt financing arrangement with CorpBanca and BBVA to fund construction of a 69.5 MW Javiera solar power plant located in Chile.

The power plant will provide energy under a 20-year power purchase agreement (PPA) to Minera Los Pelambres, a subsidiary of Antofagasta Minerals, the largest private mining group in Chile and one of the largest copper producers in the world.

CorpBanca has acted as underwriter and mandated lead arranger, and it has also participates as administrative and onshore collateral agent, and BBVA has acted as mandated lead arranger. Both of the lenders are also providing a local Chilean Peso VAT facility for the equivalent of US$30 million. This deal represents the first time that solely commercial banks are participating in the senior debt facility for a solar project in Chile.

Interconnection of the plant is expected to take place during the first quarter of 2015. Once completed, the plant will become one of the largest solar photovoltaic power plants in Latin America.

The Javiera transaction demonstrates further progress on the development, financing, and installation of power projects that TerraForm Power has available for purchase from SunEdison's power asset development engine. Furthermore, SunEdison will operate the plant under a long-term operation and management (O&M) agreement.

Jose Perez, President of SunEdison for Europe, Middle East, Africa and Latin America, stated:

We are delighted to expand our collaboration with world-class financial institutions such as CorpBanca and BBVA. This project is further proof of the ability of solar photovoltaic energy to compete with other traditional energy sources in Chile, and demonstrates how clean energy technologies can contribute to meet the growing energy demand from the country's mining industry.

Rodrigo Oyarzo Brncic, Managing Director, Wholesale & Corporate Banking Division of CorpBanca, commented:

This year, we have seen how renewable energy has made great strides in our country's development, and CorpBanca has become a permanent partner in energy projects. We look forward to continuing to support the development of various business projects, especially those related to infrastructure and energy.

Carlos Lopez Rabadan, Head of Project Finance of BBVA in Chile, said,

We are thrilled to see that the renewables market in Chile is taking off, as it sees industrial partners signing bankable PPAs, as well as commercial banks financing projects with relevant partners and attractive prices.