Ibereólica Cabo Leones II’s $217 Million Project Financing

Ibereólica Cabo Leones II's $217 Million Project Financing

Milbank and Philippi Prietocarrizosa Ferrero DU & Uría advised Global Power Generation (GPG) and Grupo Ibereólica on the deal. White & Case and Carey advised the lenders, issuing banks and mandated lead arrangers, and the administrative agent and intercreditor agent on the deal. Linklaters and Garrigues advised Scotiabank Chile on the transaction.

The Bank of Nova Scotia, KfW IPEX-Bank GmbH, ING Capital LLC, MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation and Instituto de Crédito Oficial E.P.E. acted as lenders, issuing banks and mandated lead arrangers, and MUFG Bank Ltd., as administrative agent and intercreditor agent, in connection with the financing of two renewable power projects in Chile.

The projects include: a US$217 million non-recourse first/second-lien project financing for a 235 MW wind farm owned and operated by Ibereólica Cabo Leones II S.A. (Cabo II) located in Atacama, Chile; and a US$103.2 million non-recourse project financing for a 101 MWp solar PV power plant, owned and operated by GPG Solar Chile 2017 SpA (San Pedro) and located in Antofagasta, Chile. The Cabo II project is a joint venture between Spanish power producers Global Power Generation (GPG) and Grupo Ibereólica. The San Pedro project is wholly owned by GPG. GPG is a subsidiary of Spanish holding company Grupo Naturgy.

The Cabo II project was awarded twenty 20-year power purchase agreements (the Disco PPAs) under Chile’s distribution company auction regime. The projects have entered into an innovative contractual arrangement to allocate and hedge the supply obligations under the Disco PPAs. The San Pedro project commenced operations in January 2021 and the Cabo II project is expected to commence operations in 2021.

Milbank advised Global Power Generation (GPG) and Grupo Ibereólica with Jaime Ramírez, María Natalia Rodríguez Pastrana, Sonia Lopez and John Preston.

Philippi Prietocarrizosa Ferrero DU & Uría advised Global Power Generation (GPG) and Grupo Ibereólica with Marcela Silva González, Felipe Arévalo, Alejandro Espejo Torrico, Pedro Pablo Valenzuela, Vera Yacher and Valentina Sebeckis.

The White & Case team was led by partner Carlos Viana (Picture) and included partner Jeannine Acevedo, associates Ana Arias, Maria Vanegas, Helena Buitrago and Camille Mendoza Soto in Miami; partner Edward So, and associates Rhys Bortignon and Jesse Fleck in New York; partner Fernando Navarro and counsel Julio Peralta in Madrid.

In Chile, Carey advised the lenders with a team including  Felipe Moro, Diego Lasagna, Fernanda Valdés, Francisca Hernández, Jorge Soto, José Tomás Hurley, Juan Pablo Vukasovic, Julio Recordón, Nadia Jara Astudillo, Rafael Mackay and Valentina Mendoza.

Involved fees earner: Francisca Hernández – Carey; José Tomás Hurley – Carey; Nadia Jara – Carey; Diego Lasagna – Carey; Rafael Mackay – Carey; Valentina Mendoza – Carey; Felipe Moro – Carey; Julio Recordon – Carey; Jorge Soto – Carey; Fernanda Valdés – Carey; Juan Pablo Vukasovic – Carey; Francisca Ferrer – Garrigues; Pedro García Morales – Garrigues; April Kent – Linklaters; Francis McCabe – Linklaters; Vijaya Palaniswamy – Linklaters; Sonia Lopez – Milbank LLP; John Preston – Milbank LLP; Jaime Ramirez – Milbank LLP; Felipe Arévalo – Philippi Prietocarrizosa Ferrero DU & Uría; Alejandro Espejo Torrico – Philippi Prietocarrizosa Ferrero DU & Uría; Valentina Sebeckis – Philippi Prietocarrizosa Ferrero DU & Uría; Marcela Silva Gonzalez – Philippi Prietocarrizosa Ferrero DU & Uría; Pedro Pablo Valenzuela – Philippi Prietocarrizosa Ferrero DU & Uría; Vera Yacher – Philippi Prietocarrizosa Ferrero DU & Uría; Jeannine Acevedo – White & Case; Ana Maria Arias – White & Case; Rhys Bortignon – White & Case; Helena Buitrago – White & Case; Camille Mendoza Soto – White & Case; Fernando Navarro – White & Case; Julio Peralta – White & Case; Edward So – White & Case; Maria Vanegas Llobet – White & Case; Carlos Viana – White & Case;

Law Firms: Carey; Garrigues; Linklaters; Milbank LLP; Philippi Prietocarrizosa Ferrero DU & Uría; White & Case;

Clients: Global Power Generation SA; Ibereólica, S.L.; ING Capital LLC; Instituto de Crédito Oficial; KfW IPEX-Bank GmbH; MUFG Bank, Ltd.; Scotiabank Chile; Sumitomo Mitsui Banking Corporation; The Bank of Nova Scotia;

Author: Martina Bellini