Cerro Dominador closes $758 m financing for the first CSP plant in Latin America

Cerro Dominador, a Chilean company owned by investment funds managed by EIG Global Energy Partners (“EIG”), announced today the signing of the financing for its Concentrated Solar Power plant (CSP) located in the Atacama desert, in Chile. This milestone will allow the company to finalize the construction of the first combined CSP and photovoltaic project in Latin America, with a total of 210 MW of capacity. The plant will supply clean, reliable energy to the national interconnected system in Chile, selling most of its power under 15-year power purchase agreements awarded at the end of 2014.

The $758 million financing has been subscribed by a group of international financial institutions and the contribution of local banks. Among the financial entities involved are: Natixis, Deutsche Bank, Société Générale, ABN AMRO, Santander, Commerzbank and BTG Pactual as well as other institutional investors in a tranche parallel to the bank financing. Other participants are expected to join the banking group in the coming weeks.

The Cerro Dominador project is located in Maria Elena, near Calama, in the Antofagasta Region, an area with one of the highest solar radiation in the world. The new plant will produce clean energy, replacing the expected emissions of 640,000 tons of CO2 per year, reaching -as an integrated project- a total of 870,000 tons of CO2 reduction per year.

The new construction phase will have an important contribution in terms of employment for the region, generating more than 1,000 jobs at the peak during the next two years.

Panorámica del campo solar de 330 ha. de la planta fotovoltaica, 2015
Panorámica del campo solar de 330 ha. de la planta fotovoltaica, 2015

The company has been advised throughout the financing process by Milbank, Tweed, Hadley and McCloy (International Counsel), Morales y Besa (Local Counsel), and Astris Finance (Financial Advisor). The completion of the plant construction will be carried out by a consortium formed world leading companies in solar technology. Cerro Dominador is a proud contributor of the Chile Energy Agenda, which has pursued to diversify the country’s matrix by increasing the use of renewable energy.

EIG took its control position and management oversight of the solar project at the end 2016. The first part of the Solar Project, with 62 MW of photovoltaic power started in October 2017, reaching the full 100 MW in February 2018.

Source: Cerro Dominador