Mytilineos, a Greek industrial conglomerate, has reached the financial close for its 588 MW non-recourse solar park portfolio in Chile. The financing was secured from lenders BNP Paribas, Intesa San Paolo, Sumitomo Mitsubishi Banking Corporation, Rabobank, and Santander Chile.
The financing consists of a construction and term facility of $315 million, a VAT facility of $30 million, and a $32 million letter of credit facility.
The portfolio was acquired between 2020 and 2021 as part of Mytilineos’ strategic investment into the Chilean market. Once constructed, solar parks Willka, Doña Antonia, Tocopilla, and Tamarico in Chile are expected to produce approximately 1.6 TWh of green electricity annually, reducing over 600 thousand tons of carbon dioxide emissions annually.
All the projects are currently at different stages of construction. The Willka Solar Park started operations in August and was recently inaugurated. The project has a total investment of over $110 million – the largest foreign capital investment in the region in recent years.
Doña Antonia is expected to be commissioned in early 2024, and Tocopilla and Tamarico by the second quarter of 2024.
Most of the power produced by the four projects will be sold to Enel Chile under respective ten-year power purchase agreements. The projects will also be eligible to receive capacity payments from the network coordinator.
Milbank and Larrain acted as borrower counsels, White & Case and Garrigues as lender counsels, G-Advisory as technical advisor, DNV Antuko as a market advisor, Marsh as insurance advisor, and KPMG as tax advisor and model auditor.
According to Mercom’s 9M and Q3 2023 Solar Funding and M&A Report, the announced large-scale project funding in the first nine months of 2023 came to $27.5 billion in 169 project funding deals, a 20% increase compared to $22.9 billion in 128 projects in 9M 2022.
Radial Power, a developer-owner-operator of distributed clean energy assets across large real estate portfolios, recently secured $80 million in tax equity financing from Bank of America to fund developing and installing 96 MW commercial and industrial (C&I) and community solar projects across the U.S.