Solek Group, through its wholly owned subsidiary Solek Chile Holding III Spa (“Solek Group” or “Solek”), and Corporación Interamericana para el Financiamiento de Infraestructura, S.A (“CIFI”), a leading provider of infrastructure finance in Latin America, have signed a US$15.1 million loan facility to finance construction of Solek’s photovoltaic PMG/PMGD projects in Chile. Banco Scotiabank S.A. will act as the account bank and the VAT lender.
The initial disbursement under the facility will finance two PMGD projects, Don Flavio and El Huaso, each with a total installed capacity of 2.99MWp, located in the regions of Maule and Valparaíso. Additional projects will be added to the facility in due course.
Mr. Zdeněk Sobotka, CEO of Solek, commented: “This facility represents another landmark financing transaction for Solek. It will enable us to deliver yet more sustainable green energy in Chile under the local PMG/PMGD framework. CIFI, with their developmental, environmental and social engagements have a mandate to make this world a better place and we are proud to include them as one of our business partners”.
Mr. Cesar Cañedo-Arguelles, CEO of CIFI, commented: “We are pleased to bring this financing process with Solek to a successful conclusion. This transaction reinforces CIFI’s position of a leading infrastructure finance provider in Latin America and the Caribbean and is in line with our mission of providing finance to foster development, growth and environmentally sound infrastructure solutions for the region.”
The Chilean PMG/PMGD regime was created with the goal of incentivizing more distributed and greener electricity generation. The projects in the Solek PMGD portfolio also contribute to Chile’s broader energy transition as the country gradually retires coal plants on its way towards the long-term goal of carbon-neutrality.
Solek is an experienced vertically integrated developer, owner and manager of solar power plants. The Company’s largest presence is in Chile, with additional projects in the Czech Republic and Romania. The Company delivered its first PMGD project in Chile in 2016 and has since established a prominent presence in the country’s PMGD space. Solek currently employs 210 professionals, of which 115 are based in Chile. As part of its strategic development, SOLEK is expanding to other markets including Hungary, Cyprus, Greece, France, Colombia and Peru. Up to now, SOLEK successfully completed more than thirty projects. The company’s goal is to build 500 MW of installed capacity by the end of 2023.
About CIFI (Corporación Interamericana para el Financiamiento de Infraestructura, S.A.)
CIFI is a nonbank financial institution with more than twenty years of experience in infrastructure and energy financing in Latin America and the Caribbean. Created in 2001, the company has analyzed more than 600 projects and has participated in more than 200 transactions for a value of more than US$1.8 billion. CIFI has become a leading participant in the trend toward sustainable infrastructure projects in Latin America and the region’s overall economic development.
About Scotiabank Chile
Scotiabank is a leading bank in the Americas. Guided by our purpose: “for every future” we help our customers, their families and their communities achieve success through a broad range of advice, products, and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of over 90,000 employees and assets of approximately $1.2 trillion (as of October 31, 2021), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on Twitter @ScotiabankViews.