Solek Group, through its Chilean subsidiaries, and Natixis as Sole Lead Arranger, Hedge Provider, LC Issuing Bank and Administrative Agent, have signed a US $85.25 million senior secured facility for a portfolio of solar photovoltaic plants in Chile totaling at least 110MW. This marks Natixis’ first transaction with Solek, which was fully underwritten by Natixis.
Solek’s portfolio consists of solar projects that will operate under Chile’s special regime for distributed generation projects . Each of the PMGD projects in the portfolio will have a capacity of up to 9 MWAc and be entitled to sell its energy output at the regulated stabilized price. The financing structure provides Solek the flexibility to add other projects to the portfolio, subject to meeting pre-defined eligibility criteria.
Mr. Zdenek Sobotka, CEO of Solek, commented: “I trust this facility is only the beginning of our successful cooperation with Natixis. This loan is an expression of trust in our business and recognition of its success in Chile. Solek is committed to continue delivering renewable energy solutions in the most attractive markets on a global basis.”
“Natixis has dedicated a consistent and increasing focus on the LatAm region and the development of PMGD projects,” said Ben Koehler, Executive Director, Infrastructure & Energy Finance at Natixis. “With this transaction, our eighth PMGD term financing as Sole Lead Arranger in the last two years, we are solidifying our position as a leading financial institution and further strengthening our commitment to clients in the power sector and the infrastructure space more broadly.”
The PMGD regime was created in 2005, with the goal of incentivizing more distributed and greener electricity generation. The projects in the Solek PMGD portfolio also contribute to Chile’s broader energy transition as the country gradually retires coal plants on its way towards the long-term goal of carbon neutrality.