Clifford Chance

Clifford Chance advises CIFI on portfolio financing of PMGD solar projects in Chile

Leading international law firm Clifford Chance has advised Corporación Interamericana para el Financiamiento de Infraestructura, S.A. (CIFI) as senior and subordinated lender, mandated lead arranger and administrative agent, in connection with the financing of a portfolio of solar photovoltaic projects in the Republic of Chile. The initial disbursement under the facility will finance two PMGD projects, Don Flavio and El Huaso, located in the regions of Maule and Valparaíso. Each project with have a total installed capacity of 2.99MWp, and additional projects will be added to the facility in due course.

The portfolio consists of solar photovoltaic projects, which are small distributed generation projects that operate under Chile’s Pequeños Medios de Generación Distribuida program (PMGD). PMGD projects are entitled to be remunerated for their generation at a regulated stabilized price calculated by the Chilean National Energy Commission. The PMGD program was created by the Chilean government in 2005 with the goal of incentivizing the development of distributed generation projects closer to the end users.

Clifford Chance lead partner Jessica Springsteen commented, "We are pleased to bring our experience advising on renewable energy projects across Latin America to support CIFI on a transaction related to the PMGD program. This project reflects the importance of renewable energy on the journey to a sustainable future in Chile and Latin America."

Working with Springsteen on this transaction was special legal consultant Alan Sakar Azuara, associate Greg Jehle and law clerk Jenny Ahn.

CIFI is non-banking financial entity based in Panama, which advises and finances infrastructure projects in Latin America and the Caribbean. The company's lead counsel Javier Balbontin and project attorney Cristina De Roux acted as part of the legal team on this transaction.

Clifford Chance has a strong history advising on renewable energy transactions in Chile, including on PMGD projects. The firm previously advised Reden Development Chile in connection with the portfolio financing of PMGD PV projects as well as Grenergy on the financing of a portfolio of solar projects in the country.