More details on Solarpack Peruvian solar PV portfolio refi
More details have emerged on Solarpack and Ardian's $226.5 million refinancing of the debt package stapled to three solar PV projects in Peru - Moquegua, Tacna Solar and Panamericana Solar - signed on 2 November.
The original 18.5-year $185 million non-recourse financing, provided by DFC (at the time Opic), BNP Paribas, Societe Generale and SMBC, closed in 2012. At the time the cost of the projects was estimated to be $251 million.
A person close to the transaction said that the motivation for refinancing was opportunistic, taking advantage of current market conditions. It means that Peru will probably see more refinancing transactions in the short-term, especially renewable projects, since international institutions are increasing their focus on ESG.
Another reason for refinancing was the tenor, which now matches the whole life of the PPAs with the government. Tacna and Panamericana have 12 years remaining on dollar-denominated long-term power purchase agreements with the Peruvian Energy Ministry, issued in the country’s first renewable auction, in 2010.
Milbank provided legal counsel to the lenders. Astris Finance provided financial advisory to the borrowers, and Rodrigo, Elias & Medrano provided legal counsel to the borrowers.
