SunEdison announced the closing of a US$130 million non-recourse debt financing arrangement with CorpBanca and BBVA. The debt proceeds will be used to fund construction of a 69.5 megawatt (MW) solar power plant located in Chile. The power plant will provide energy under a 20-year Power Purchase Agreement (PPA) to Minera Los Pelambres, a subsidiary of Antofagasta Minerals, the largest private mining group in Chile and one of the largest copper producers in the world.
Both of the lenders are also providing a local Chilean Peso VAT facility for the equivalent of $30 million USD. This deal represents the first time that solely commercial banks are participating in the senior debt facility for a solar project in Chile.
Interconnection of the 69.5 MW Javiera plant is expected to take place during the first quarter of 2015. Once completed, the plant will become one of the largest solar photovoltaic power plants in Latin America.
TerraForm Power, Inc., an indirect subsidiary of SunEdison and owner and operator of solar power plants, intends to execute its call right on Javiera in 2015 after the project is interconnected.
José Pérez, President of SunEdison for Europe, Middle East, Africa and Latin America, stated, “This project is further proof of the ability of solar photovoltaic energy to compete with other traditional energy sources in Chile, and demonstrates how clean energy technologies can contribute to meet the growing energy demand from the country’s mining industry. This energy solution model is replicable in other industrial sectors and in other countries across the region.”