French corporate and investment bank Natixis and Reden Investments Chile SpA, a subsidiary of France-based solar developer Reden Solar, have successfully closed senior secured facilities totaling US$81.5 million for an expected 100 MWp portfolio of approximately 20 solar photovoltaic (“PV”) plants in Chile.
This is Reden Solar’s second solar PV portfolio in Chile, its first having also been financed by Natixis.
Each project is under 9 MWac and will sell energy at a stabilized price as part of Chile’s PMGD framework (Spanish acronym for Small Means of Distributed Generation).
The four initial solar PV plants in the portfolio have a total capacity of 18.9 MWp.
These solar PV projects in Reden Solar’s second portfolio will contribute to Chile’s broader energy transition as it progressively retires coal plants and heads towards long-term carbon-neutrality.
The financing structure will provide Reden the flexibility to add projects to the portfolio, subject to meeting pre-defined eligibility criteria.
Natixis acted as Sole Lead Arranger, Hedge Provider, LC Issuing Bank and Administrative Agent, and provided a firm underwriting for 100% of the transaction.
Bernardo Leáñez, Project Finance Manager at Reden Solar said:
“Even in the most uncertain and challenging economic environment, Natixis has managed to deliver a successful transaction, which fulfilled Reden’s expectations in terms of timing and financing conditions. It demonstrates Natixis’ leadership and deep knowledge of the Chilean energy market.”
Aitor Alava, Managing Director, Head of Infrastructure Finance, Latin America at Natixis said:
“This marks the sixth PMGD term financing for which Natixis has acted as Sole Lead Arranger over the past 16 months, representing approximately $500 million. These transactions further consolidate Natixis’ leadership among financial institutions in the PMGD space.”
Source: Press release by Natixis. Photo credit: © Reden Solar.