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Clifford Chance advises Chilean REDEN Solar on innovative PMGD parallel notes private placements

19 October 2022

Clifford Chance advises Chilean REDEN Solar on innovative PMGD parallel notes private placements

New York: Leading international law firm Clifford Chance advised REDEN Solar in connection with two Section 4(a)(2) private placement of senior notes for an aggregate principal amount of US$135 million (the Notes). REDEN Solar used the proceeds from the issuance of the Notes to refinance indebtedness originally incurred to finance the development and construction of two portfolios comprising 31 solar projects across Chile with an aggregate installed capacity of 177 MW.

The portfolio is comprised of small distributed generation projects (each with a total capacity of between 3 MW and 9 MW), that operate under Chile’s Pequeños Medios de Generación Distribuida program (PMGD). Under the program, PMGD projects are entitled to remuneration at a regulated stabilized price calculated by the Chilean National Energy Commission. The PMGD program was created by the Chilean government in 2005 to incentivize the development of distributed generation projects closer to the end users and support Chile's transition to a greener economy.

REDEN Solar is an independent producer of photovoltaic renewable energy, focusing on the development, construction and operation of photovoltaic power plants in France, Chile, Mexico, Puerto Rico, Portugal, Spain, Italy and Greece.

Commenting on the transaction, Capital Markets partner Hugo Triaca said, "Clifford Chance continues to advise on many landmark renewable energy projects across Latin America. We are pleased to have worked with the REDEN Solar team on this innovative refinancing transaction related to the PMGD program, that will positively impact Chile's energy sector."

Lead associate Alan Sakar added, “The global energy industry is changing rapidly. With governments and players around the world looking to maximize the use of renewable energy and reduce the cost of integration technologies, the philosophy of PMGD and distributed generation projects align with the '3Ds' of the global energy economy of the future: Decentralization, Decarbonization and Digitalization."

Working with Triaca and Sakar was a cross-border, cross practice team including:

  • Washington, DC: partner Megan Gordon, counsel Jacqueline Landells and law clerk Juan Pablo Avila
  • New York: partner Jefferey LeMaster

Clifford Chance advises on many landmark renewable energy transactions in Chile, including on PMGD projects. The firm previously advised CIFI on a portfolio financing of 24 PMGD solar projects, CIFI on another portfolio financing of PMGD solar projects in Chile, and Reden Development Chile in connection with a portfolio financing of PMGD PV projects. The firm also advised on a US$1.2 billion issuance by ISA Interchile SA, the largest green project bond in Latin America.