Spain's Ibereólica Renovables has signed a $110.8 million financing for its Cabo Leones III wind project in the Atacama region of Chile.
The debt for the 173.25 MW project, located in Huasco province, comprises a $93.7 million senior term loan, $4.4 million in letters of credit and a $12.7 million VAT facility.
Sumitomo Mitsui Banking Corp. and Santander Chile are the lenders. SMBC's involvement in the deal was reported in May (PFR, 5/21).
Philippi Prietocarrizosa Ferrero DU & Uría was the sponsor's legal counsel and the banks were advised by Squire Patton Boggs, Linklaters and Morales & Besa.
Cabo Leones III will be fitted with 50 wind turbines with a capacity of 3.465 MW each at an expected total cost of around $182 million.
It will be interconnected to the Maitencillo substation and serve the Great Northern Interconnected System (Sing).
The project is part of a larger portfolio of wind farms developed by Ibereólica in Huasco province, which also includes Cabo Leones I and Cabo Leones II.
The financing of Cabo Leones III was delayed earlier this year after the Chilean environmental regulator, Superintendencia Del Medio Ambiente, initiated proceedings alleging that the developer deliberately split up the three wind projects and a related transmission line in order to ease the permitting process.
The regulator determined that the developer had not broken the rules in a final resolution published in April, allowing the financing process to proceed more quickly.
Ibereólica and EDF are 50:50 equity owners of the 115 MW Cabo Leones I wind farm, which is expected to be refinanced through a bond issuance. It was originally financed in 2016 with a $140 million 18-year loan from SMBC, Crédit Agricole and DNB Nor (PFR, 11/22/16).
Global Power Generation (51%) and Ibereólica (49%), meanwhile, are the owners of the 204 MW Cabo Leones II project, which is under construction. The $363 million cost of this project is being financed on balance sheet. GPG was set up by Gas Natural Fenosa (now Naturgy) and KIA, through its subsidiary Wren House Infrastructure. The sponsors signed a contract with Senvion in 2018 to supply 89 turbines for the project.
(A version of this article first appeard in IJGlobal).