- In a perfectly orchestrated legal negotiation CIFI’s in-house counsel worked alongside Clifford Chance – New York and Carey – Chile, to bring forth the closing of a Project Finance deal on March 11, 2022
- Cifi has structured a senior loan under a Project Finance scheme for a portfolio of 24 PMGD photovoltaic plants with an estimated total investment cost of US$ 86.6 million.
- The construction of the 24 photovoltaic plants will avoid the estimated total emission of 73,344 tons CO2eq/year of avoided emissions to the atmosphere due to renewable energy.
oEnergy Holding SpA commissioned Corporación Interamericana para el Financiamiento de Infraestructura (CIFI) to structure the financing of a portfolio of 24 PMGD photovoltaic projects with a total capacity of 72 MWp, estimated at US$86.6 million.
CIFI’s in-house legal team, Javier Balbontin- Lead Counsel and Cira Ugas- Project Attorney, led by Jose Salaverria- General Counsel, worked with Clifford Chance´s team Jessica Springsteen-Partner, Alberto Haito-Counsel, Greg Jehle-Associate, and Marilia Correa-Associate and Carey´s Felipe Moro-Partner.
oEnergy’s legal team, Gonzalo Paredes-Legal Manager and Maccarena Chacc-Lawyer, were advised by Greenberg Traurig LLP ´s Oscar Stephens Shareholder and Sean Obryan-Lawyer and by Guerrero Olivos’ Miguel Coddou- Partner, Benjamín Novoa- Associate, Matías Ríos- Associate and Sofía Middleton- Associate.
Cira Ugas said, “CIFI has achieved a financial closing in just over 2 months, in which the legal team has proven its ability to negotiate agreements and collateralize complex financial transactions, always showing flexibility and adaptability to the client’s needs.”
Since 2004, laws have been passed in Chile to promote renewable energy (RE) plants. The PMGD (small means of distributed generation) plays an essential role in this sector. At present, small generators account for about 1,000 MW (4% of the total capacity in the system), and solar photovoltaic plants represent 74% of this capacity.
Over the years, Cifi has acquired extensive experience in the renewable energy sector, structuring loans for seven PMGD projects within Chile’s energy organization system. And it has always done so with the vision of generating a positive and sustainable impact on the communities. Its entire staff works with commitment and high lights to ensure that each project is socially and environmentally responsible.
As part of this financing, CIFI will participate with an amount of US$ 15.5 million to Pinguino Emperador SpA, a company of oEnergy Holding SpA, owner of this portfolio, to build the first PMGD plants of the portfolio. In contrast, the total financing is being closed with other financial institutions interested in participating with CIFI. CIFI’s commitment consists of a senior debt tranche of US$12.9 million and a subordinated debt tranche of US$2.6 million, with disbursements beginning in March.
About CIFI (Corporación Interamericana para el Financiamiento de Infraestructura, S.A.)
CIFI is a non-bank financial institution with over 20 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 Clifford Chance
Clifford Chance is one of the world’s pre-eminent law firms with significant depth and range of resources across five continents. As a single, fully integrated global partnership, we pride ourselves on our approachable, collegial and team-based way of working. We always strive to exceed the expectations of our clients, which include corporates from all commercial and industrial sectors, governments, regulators, trade bodies and not-for-profit organizations. We provide them with the highest-quality advice and legal insight, which combines the firm’s global standards with in-depth local expertise.
Clifford Chance has been recognized for decades as a preeminent law firm in Latin America. The Firm’s dedicated Energy & Infrastructure team is comprised of bilingual and culturally fluent lawyers who understand Latin America’s distinct business, legal and regulatory landscapes, as well as the evolving needs of a diverse client base. The group works seamlessly across practices on matters involving project development and the delivery of cutting-edge finance and capital markets structures. Uniquely, the team is adept at developing sophisticated, multisource financings, both through project-finance and -bond structures and securitization schemes that involve a combination of commercial banks, multilateral lending agencies and the bond markets.
Carey is Chile’s largest law firm, with over 270 legal professionals. We are a full-service firm. Our various corporate, litigation and regulatory groups include highly specialized attorneys and practice areas covering all areas of law. Our clients include some of the world’s largest multinationals, international organizations, and some of the most important local companies and institutions. Our lawyers have graduated from the best law schools in Chile and most of our mid- and senior-level associates have graduate degrees from some of the world’s most prominent universities. We are an effective bridge between legal systems. Most of our partners and senior associates have worked in North America, Asia, and Europe, as foreign or regular associates with leading international law firms, or as in-house counsel for major corporations or international institutions. We are the law firm in Chile with the most practice areas ranked as Band 1 by Chambers Latin America: Banking and Finance; Corporate, M&A; Labor; Energy and Natural Resources; Insurance; Intellectual Property; Projects; Tax and Telecommunications.
About Greenberg Traurig, LLP
Greenberg Traurig, LLP has more than 2400 attorneys in 42 locations in the United States, Europe, Latin America, Asia, and the Middle East. The firm, often recognized for its focus on philanthropic giving, innovation, diversity and pro bono, reported gross revenue of over $2 Billion for FY 2021. The firm is consistently among the top firms on the Am Law 100, Am Law Global 100, NLJ 250, and Law360 (US) 400. On the debut 2022 Law360 Pulse Leaderboard, it is a Top 15 firm. Greenberg Traurig is Mansfield Rule 4.0 Certified Plus by The Diversity Lab and net carbon neutral with respect to its office energy usage. Web: www.gtlaw.com.
About Guerrero Olivos
Guerrero Olivos is a leading full-service law firm in Chile with extensive experience both in local and international markets. With several decades of practice, it is well recognized for its team of experts and as a law firm built on excellence, efficiency, loyalty, and integrity. Our client’s legal requirements demand us to be leading advisors in critical and sophisticated transactions of high impact, spanning legal, economic, and financial matters. To fulfill our client’s demands, we established ourselves as an independent law firm with a formal organization and a clear business model focused on providing legal services of the highest quality. In Guerrero Olivos our clients find tailored legal services and comprehensive innovative solutions for their needs. Our services include capital markets regulations, banking law, project finance and all forms of corporate finance as well as in corporate law-related matters, such as restructurings, mergers and acquisitions, labor, and tax law. We have also built a prominent position in the Chilean legal market in energy related projects including electric generation, distribution and transmission, hydrocarbons, water, water desalination, and wastewater treatment, including environmental and regulatory advice. Furthermore, Guerrero Olivos enjoys high prestige in litigation and alternative dispute resolution mechanisms, in administrative and public law, antitrust, sports law, mining and real estate law, intellectual property, telecommunications and treatment of technology related matters. Our culture of conducting our work in a professional and friendly environment has greatly impacted the quality of our work. As a result, we consistently rank among the top workplace environments by A Great Place to Work, becoming a great workplace which traduces into superior business. This makes Guerrero Olivos not only a great place to work, but also a great law firm to work with.