Mainstream tests bank appetite for Huemul renewable scheme
Mainstream Renewable Power is testing bank appetite for an approximately $500 million-$600 million loan to finance development of the Huemul renewable scheme in Chile.
The portfolio - which is a follow-up to the $580 million loan backing Condor, the 572MW first phase of the 1.3GW Andes Renovables portfolio - comprises four wind projects totalling 525MW and two solar farms totalling 205MW. However, while most of the six remaining assets will be finance under the Huemul deal, any remaining projects will be closed under a third transaction called Copihue.
The lender line-up and tenor is expected to mirror Condor, which was financed by Caixabank, DNB, KfW IPEX-Bank, Natixis, SMBC, and Societe Generale via a $580 million 19-year loan priced at 230bp over Libor, with step-ups beginning in year six. However, Huemul will have more banks than its predecessor. Two unnamed banks have already joined the syndicate, with ABN Amro and Credit Agricole also said to have joined the deal as lead arrangers. In addition, the Inter-American Development Bank (IDB) is expected to join the funding mix, providing a level of comfort for lenders.
