Global law firm White & Case LLP has advised Toesca Renovables SpA (Toesca), a sociedad por acciones, organized and existing under the laws of Chile, on a non-recourse project financing for a portfolio of greenfield solar photovoltaic projects in Chile.
The deal enables Toesca to acquire as many as 18 projects for a combined minimum capacity of up to 121.4 MWps. Each project will be constructed and connected under Chile's PMGD (Pequeños Medios de Generación Distribuida) program, a pillar of the country's strategy to become carbon-neutral by 2050.
The financing consisted of (i) a US$86.3 million term loan, with an accordion feature permitting Toesca to request up to US$102 million in additional senior debt, at its sole discretion, and (ii) a letter of credit facility, to satisfy debt service reserve obligations thereunder. In addition to acquiring the initial portfolio of projects identified at signing, loan proceeds may be used to purchase additional solar assets, subject to satisfaction of certain conditions.
This is the first PMGD financing Toesca has completed, and one of the largest PMGD financings to successfully close to-date year.
The White & Case Project Finance and Development team was led by partner Martin Menski (Washington, DC), and included partner Carlos Viana (Miami), and associates Chris Bergan (Miami) and Ángeles Femenía (Mexico City). They were supported by Capital Markets partner Ian Cuillerier and counsel Rhys Bortignon (both in New York).
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