CVE Chile and Natixis, as Sole Lead Arranger, Hedge Provider, LC Issuing Bank and Administrative Agent, have successfully closed US$95 million senior secured facility for a portfolio of solar photovoltaic plants in Chile with expected capacity of 150MWp. Natixis successfully financed CVE’s first PMGD portfolio in Chile in November 2019, so this marks Natixis’ second transaction with CVE, which was fully underwritten by Natixis.
CVE’s portfolio consists of solar projects that will operate under Chile’s special regime for distributed generation projects (known as "PMGD”). Each of the PMGD projects in the portfolio will have a capacity of up to 9 MWAC and is entitled to sell its energy output at the regulated stabilized price. The financing structure provides CVE with the flexibility to add other projects to the portfolio, subject to meeting pre-defined eligibility criteria.
According to CVE, the Portfolio is in line with our vision of the renewable energy market, based on the decentralization of production and a direct energy sales model through private contracts, in response to the needs of businesses and local authorities. This financing consolidates CVE’s long-term presence in Chile and its position as a leader in the PMGD market.
“Natixis has a long and successful track record financing infrastructure in the LatAm region, including approximately 15 power sector deals in Chile over the past 3 years,” said Ben Koehler, Executive Director, Infrastructure & Energy Finance at Natixis. “This transaction marks our ninth PMGD term financing as Sole Lead Arranger in just over two years. We’re thrilled that CVE financed this second PMGD portfolio following our joint success on their first portfolio, and we look forward to continuing to support their growth in Chile and elsewhere”.
“With this senior financing of our second PMGD portfolio, Natixis strengthens its partnership with CVE Chile, serving the energy transition in Chile. This operation with a major player such as Natixis demonstrates the financial expertise of CVE's as well as the attractiveness of our Chilean projects” said Cyril Gilot, Financing and Investments Director at CVE.
The PMGD regime was created in 2005, with the goal of incentivizing more distributed and greener electricity generation. The projects in the CVE PMGD portfolio also contribute to Chile’s broader energy transition as the country gradually retires coal plants on its way towards the long-term goal of carbon-neutrality.