Solar power technology manufacturer SunEdison Inc. announced the closing of a $130 million non-recourse debt financing arrangement with CorpBanca and BBVA.
The debt proceeds will be used to fund construction of a 69.5 MW solar power plant located in Chile. The power plant will provide energy under a 20-year power purchase agreement to Minera Los Pelambres, a unit of Antofagasta Minerals.
Both of the lenders are also providing a local Chilean Peso VAT facility for the equivalent of $30 million. This deal represents the first time that solely commercial banks are participating in the senior debt facility for a solar power project in Chile.
Interconnection of the 69.5 MW Javiera plant is expected to take place during the first quarter of 2015. Once completed, the plant will become one of the largest solar photovoltaic power plants in Latin America.
TerraForm Power, Inc., an indirect unit of SunEdison and owner and operator of solar power plants, intends to execute its call right on Javiera in 2015 after the project is interconnected.
The Javiera transaction demonstrates further progress on the development, financing, and installation of power projects that TerraForm Power has available for purchase from SunEdison's power asset development engine. Furthermore, SunEdison will operate the plant under a long-term operation and management (O&M) agreement.