NEW YORK, August 17, 2022 /PRNewswire/ — Natixis Corporate & Investment Banking (Natixis CIB) led the financing of approximately $360 million for a portfolio of PMGD photovoltaic solar power plants in Chile with an expected capacity of approximately 360 MWdp sponsored by Connor, Clark & Lunn Infrastructure (CC&L Infrastructure) and CarbonFree Technology (together, the “Sponsors”). The funding consists of a $19 million letter of credit facility, a $71 million bridge loan facility which will be used to finance ongoing construction costs, and an approximate amount $270 million private placement facility the proceeds of which will primarily be used to refinance existing bank debt and repay the bridge loan facility once construction of the projects is complete.
Natixis CIB acted as Lead Placement Agent and Green Issuance Coordinator for the private placement and as Sole Bookrunner, Sole Underwriter and Green Loan Coordinator for the bridge loan and letters of credit.
This is the largest PMGD portfolio funded to date both in terms of installed capacity and number of projects.
The sponsor portfolio consists of 53 solar projects that operate under from Chile special regime for decentralized generation projects (called “PMGD”), allowing projects to sell their energy production at the stabilized regulated price.
“We are delighted to complete this refinancing, one of the largest private placements of solar projects in Chile to date,” said Matt O’Brien, president of CC&L Infrastructure. “The aggregation, de-risking and successful construction of individual small-scale projects is the culmination of a multi-year strategy, allowing us to secure long-term financing at competitive rates and create value for our investors. Our Chilean solar energy base is part of our large and rapidly growing energy transition portfolio that brings together more than 1.5 gigawatts of renewable assets across a range of clean energy technologies.”
“This is Natixis’ twelfth PMGD financing in three years and the PMGD portfolio is financing the largest installed capacity ever put in place by any institution. In total, Natixis has financed approximately US$1.5 billion support the development of PMGD renewable energy production projects in Chile. This series of successful transactions builds on our long track record of innovation in Latin America and strengthens our position as a “one stop shop” for PMGD project developers looking for creative financing solutions. We look forward to continuing to support sponsors as they grow in the region and to support from Chile continuous efforts in favor of the energy transition”, declared Aitor AlavaManaging Director and Head of Infrastructure and Energy Financing, Latin America at Natixis CIB.
“Chile is making excellent progress towards the country’s clean energy and decarbonization goals for 2030, in addition to its overall goal of net zero carbon emissions by 2050. We are delighted that our portfolio of projects can contribute to this leadership in climate action, as well as providing Chilean citizens with affordable electricity for years to come,” said David Oxtoby, CEO of CarbonFree.
Anthony FerraroManaging Director and Head of Debt Capital Markets, Americas, Natixis CIB, said: “We are honored to have advised the sponsors as a trusted partner in driving this important stage of capital markets funding in the US private placement bond market for this PMGD portfolio with the largest installed capacity developed in Chile nowadays. Despite a more difficult market environment, several leading institutional investors in the US private placement market participated in this transaction. The result is a true testament to the quality of sponsorship and deal structuring, and illustrates the value and flexibility that can be brought to equity sponsors by partnering with long-term USPP infrastructure investors with the ability to trade despite short-term volatility. .”
The PMGD scheme was created in 2005, with the aim of encouraging more distributed and greener electricity production. The projects in the portfolio will contribute to from Chile a broader energy transition as the country gradually transitions from its coal-fired power plants en route to the long-term goal of carbon neutrality. Once all of the projects in the sponsors’ portfolio come into operation, the facilities will be capable of producing over 750,000 MW hours of clean electricity per year.
About Natixis Corporate and Investment Bank
Natixis Corporate & Investment Banking is a leading global financial institution providing advisory, investment banking, financing, corporate banking and capital markets services to corporates, financial institutions, financial sponsors and sovereign organizations and supranationals around the world.
Our teams of experts in 30 countries advise our clients on their strategic development, help them grow and transform their businesses, and maximize their positive impact. We are committed to supporting the environmental transition by aligning our financing balance sheet on a trajectory of +1.5°C by 2050.
Within the Global Financial Services division of Groupe BPCE, the second largest banking group in France through the Banque Populaire and Caisse d’Epargne networks, Natixis CIB benefits from the Group’s financial solidity and solid financial ratings (Standard & Poor’s: A, Moody’s: A1, Fitch: A+, R&I: A+).
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