Clifford Chance

Clifford Chance advises Allianz on notes private placement refinancing for Uruguayan wind farm

Clifford Chance advised Allianz Global Investors U.S. LLC (acting on behalf of its clients), as sole purchaser of fixed rate 22-year notes for an aggregate principal amount of approximately US$88.5 million (the "Notes") issued by Parque Eólico Kiyu S.A. in a Section 4(a)(2) private placement to refinance indebtedness incurred in 2014 to develop the Kiyú wind farm, located in the San José district of the Republic of Uruguay and operational since April 2017. The Notes were secured through a bankruptcy-remote Uruguayan collateral trust covering a substantial portion of the project's assets.

Credit Agricole Securities (USA) Inc. acted as the sole placement agent of the Notes. The sponsor, Zero-E Dollar Assets, S.L., is a subsidiary of Spanish construction group Cobra. The wind farm has an overall capacity of approximately 49.2 MW. The project has a long-term power purchase agreement with Uruguay's state-owned company Administración Nacional de Usinas y Trasmisiones Eléctricas (UTE).

"This refinancing is another example of the development of this type of long-term notes private placements across the region and highlights our Firm's ability to execute in coordination with colleagues based in New York and Madrid," said Capital Markets partner Hugo Triaca.

Lead deal associate Luis Maria Clouet added, "This refinancing is, as well, another example of the ability of institutional investors, like AllianzGI and its clients, to structure tailored solutions that meet the financing needs of different sized projects. This transaction, in particular, introduced a fairly novel security interest feature in Uruguay with a security trust structure. We are thrilled to have represented AllianzGI on this transaction, as it will likely open the door to similar financing opportunities in Uruguay and other countries in the region."

The Firm's team was led by Triaca and Clouet in New York and by partner Jose Guardo and associate Marta Ruiz in Madrid. The team also included Tax partner Avrohom Gelber and ERISA counsel Paul Koppel, based in New York, and Litigation partner Megan Gordon and counsel Jacqueline Landells and Catherine Ennis, based in Washington, DC.