Natixis Advises Consortium Awarded Concession for Kelar, 517 MW Chilean Power Project

Paris, France, December 19, 2013

Natixis acted as a financial advisor to the consortium of Korea Southern Power Corporation (“KOSPO”) and Samsung C&T Corporation for its successful bid to be awarded the concession from BHP Billiton (“BHP”) to contract the Kelar Project, a 517 MW combined cycle gas fired power project in Chile’s mineral-rich northern region. Natixis is currently assisting the consortium in raising debt finance and is in discussions with an export credit agency and a club of commercial banks to meet the debt financing requirements of the project. Joint project and export finance teams of Natixis in the Americas and in Asia Pacific are advising the consortium.

The power generated from the Kelar Project will be used by BHP-owned mines in the region. The project, an important link of BHP’s strategy in the region, is expected to start supplying power to BHP’s operations by late 2016. The consortium’s bid was selected from a second-round shortlist of three international consortia.

As the representative government-owned power company in Korea, KOSPO has been working in the field of power generation with Korea Electric Power Company (KEPCO) for the past half a century. As a part of Korean power industry restructure in 2001, KOSPO separated from KEPCO and is now executing its own power business.

KOSPO owns and operates a portfolio of 10 power plants with an aggregate capacity of 9.5 GW equivalent to approximately 12% of Korea’s total generation capacity. KOSPO is currently expanding its presence outside of Korea and is focusing on the Middle East, the Americas and South Asia. KOSPO is expected to manage the operations and management of the Project given its expertise operating thermal power plants of this type.

Samsung C&T is a world class service provider in the power industry with a presence in Asia, Middle East, Europe, Africa, and the Americas. It is the founding company of Samsung Group. Samsung C&T encompasses two divisions:

  • Trading & Investment Group (T&I) focuses on three major areas: (i) energy and environment, (ii) natural resources and (iii) industrial materials. It performs various roles from developer and investor to import and export specialist.
  • Engineering & Construction Group (E&C) has an extensive expertise in performing civil engineering, housing and development construction as well as plant facilities work.