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Clifford Chance advises CIFI on portfolio financing of 24 PMGD solar projects in Chile

1 April 2022

Clifford Chance advises CIFI on portfolio financing of 24 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 senior and subordinated loans of up to US$86.6 million to be extended to a subsidiary of Chile's oEnergy for the financing of a portfolio of 24 photovoltaic PMGD projects in the Republic of Chile. The renewable energy created by the projects will avoid an estimated total emission of 73,344 tons CO2eq/year to the atmosphere.

The initial disbursement under the facility will finance two PMGD projects, Los Jotes and Las Bandurrias, located in the regions of Valparaíso and Maule. Each project will have a total installed capacity of 3 MWp, 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 to incentivize the development of distributed generation projects closer to the end users.

CIFI is a non-banking financial entity based in Panama, which advises and finances infrastructure projects in Latin America and the Caribbean.

Lead partner Jessica Springsteen commented, "We're pleased to work with CIFI on another transaction related to the PMGD program, which will continue to enable the production of renewable energy in Chile and across the region."

Springsteen and counsel Alberto Haito led the transaction, with support from associates Greg Jehle and Mari Correa.

Clifford Chance advises on many renewable energy transactions in Chile, including on PMGD projects. The firm previously advised CIFI on portfolio financing of PMGD solar projects in Chile as well as Reden Development Chile in connection with the portfolio financing of PMGD PV projects.