Chile Wind Power
Chilean Wind Farm Lands $225 Million Deal
Millbank, Tweed, Hadley and McCloy LLP recently represented a group of international lenders seeking to invest $225 into Chile’s largest wind farm.
The Chilean project, dubbed El Arrayan, is currently being developed by American wind and transmission company Pattern Energy Group LP, AEI and a Chilean company Antofagasta Minerals S.A.
Located approximately 250 north of the capitol city of Santiago, El Arrayan will be powered by 50 Siemens wind turbines with a maximum cumulative output of 115 MW.
Millbank is the counsel responsible for obtaining construction financing, the 15-year term loan and a letter of credit facility. The banks involved with the project are Bank of Tokyo-Mistubishi UFJ, Credit Agricole and Sumitomo Mitsui Banking Corp. In addition, Chile’s CorpBanca separately provided a $20 million subordinated loan to finance value-added tax payments by El Arrayan.
“El Arrayan is a prime example of how major developers are expanding internationally for renewable energy projects, particularly in Latin America…This is especially true as the US market is starting to slow due to expiring government incentives, including cash grants and the production tax credit for new wind power projects,” stated Millbank project finance partner Allan Marks.