Clifford Chance

Clifford Chance advises on financing for the Cafayate solar project, part of Argentina's RenovAr program

Clifford Chance represented the lenders – Corporación Andina de Fomento (CAF), Banco de Inversión y Comercio Exterior S.A. (BICE) and Banco de la Ciudad de Buenos Aires – in the financing of the 100.1 MWp PV plant being developed by Canadian Solar in the Province of Salta, Argentina. The Cafayate project was awarded during RenovAr 1.5, the second clean energy auction arranged by the Argentine government to promote the use of renewable energy in the country. It is the first solar project developed in the Province of Salta.

The Firm assisted in the development and implementation of a novel financing structure, which involved shielding both lenders and the sponsor from all construction risk by allocating it fully to the EPC contractor by providing for a post-COD first draw. The Clifford Chance team was led by partner Fabricio Longhin and included associates Patricio Abal, Alan Sakar and Greg Jehle and law clerk Pablo Fekete.

With the closing of this deal, the Firm's leading Latin America Energy and Infrastructure Group has now advised on twelve project financings under Argentina's RenovAr program, with more deals under way. The country has set an ambitious goal of growing renewables to 20% of its national energy matrix by 2025.