Mytilineos reaches financial close on Chile portfolio
Mytilineos Energy & Metals on Wednesday announced it has reached financial close with lenders BNP Paribas, Intesa San Paolo, Sumitomo Mitsubishi Banking Corporation, Rabobank and Santander Chile, on a 588 MWp non-recourse solar portfolio.
This portfolio was progressively acquired over 2020 and 2021 as part of Mytilineos’ strategic investment in the Chilean market, one of the most promising solar power markets in the world, with abundant resources and assertive decarbonization targets.
The financing is structured with a construction and term facility of $315 million, VAT facility of $30 million and $32 million of LC facilities. Once constructed, solar parks Willka, Dona Antonia, Tocopilla and Tamarico in Chile will produce approximately 1.6 terawatt-hour (TWh) of green electricity annually, representing a reduction of over 600,000 tons of carbon dioxide emissions per year.
The projects are at different stages of construction: Willka was energized in August and was recently inaugurated. The project has a total investment of over $110 million – the largest foreign capital investment in the region in recent years – and it will contribute 109,2 MWp, equivalent to powering more than 105,000 homes each year; Dona Antonia will be energized in early 2024; and Tocopilla and Tamarico are expected to be energized in Q2.
The majority of the power produced by the four projects will be sold to Enel Chile under respective 10-year power purchase agreements. The projects will also be eligible to receive capacity payments from the network coordinator.
