Pacific Hydro Chacayes successfully completes refinancing

5 December 2012

Leading renewable energy company Pacific Hydro and its partner Astaldi have successfully completed the refinancing of the 111MW run-of-river hydro power plant Chacayes.

The US$340 million, 14 year loan was finalised by a consortium of local banks – Itaú BBA (of Bank Itaú Chile), Bci and CorpBanca. The banks shared the role as Mandated Lead Arranger with Itaú BBA appointed administrative agent.

“We are very proud of the outcome of this process because it consolidates our local presence as we celebrate 10 years of operations in Chile.” said José Antonio Valdés, General Manager of Pacific Hydro Chile.

“We appreciate the support of our lenders and the fact that we attracted local funding is testament to the value of the Chacayes asset and clearly demonstrates the interest in renewable energy generation from local financial institutions,” explained Mr Valdés.

“The outcome of this transaction also reflects the strength of the local economy as the world faces tough financial challenges.”

Astaldi was also the EPC contractor responsible for the delivery of the project through its consortium Astaldi-Fe Grande. The successful partnership between Pacific Hydro and Astaldi enabled Chacayes to start operations on schedule at the end of 2011.

“Pacific Hydro is very keen to further develop renewable energy projects in Chile and this transaction with local banks will enable us to pursue new opportunities,” added Valdés.

“Astaldi plans to develop in the long term new projects in Chile both in the renewable energy sector and in the large public infrastructure contracts”, said Corrado Fabbri, Astaldi Concessioni Director.

In addition to Chacayes, Pacific Hydro has a development pipeline of renewable energy projects in the Alto Cachapoal Valley in Chile’s Sixth Region of approximately 500MW. The company owns the 78MW Coya and Pangal plants as well as the 155MW La Higuera and 158MW La Confluencia run-of-river hydro plants in joint venture with Norway’s SN Power.

Pacific Hydro is currently developing the 108MW Punta Sierra wind farm in Chile as part of the company’s technology diversification strategy. The project will be located in the Coquimbo Region and is expected to commence operations in early 2015.