Global Power Generation completes two bond issues to refinance 68 MW solar projects in Brazil

​Naturgy has announced that its international electricity generation subsidiary, Global Power Generation (GPG), has issued debentures to refinance two solar photovoltaic power generation plants in Brazil.

The issue, for a total amount of BRL265 million (US$70.9 million), will be used to repay expenses, costs and debts incurred for the construction of the Sertão I Solar and Sobral I Solar plants, which have a joint power generation capacity of 68 MW.

These are two of the first issues with these features carried out in Brazil for the financing of photovoltaic plants, although it is a popular way of financing wind power and transmission projects.

The Sobral plant issue was awarded in full to a single purchaser for BRL135 million (US$36.1 million), a period of 15 years and 3 months and a spread in the reference index (NTN-B) of 195 basis points.

The Sertão plant was awarded a spread in the NTN-B reference index of 120 basis points for BRL130 million (US$34.8 million). The period was set at 14 years and 3 months.

Both issues, with no guarantee of the original, received an AAA rating (local) from the rating agency Fitch. Banco Santander and Itaú have both acted as underwriters.