PF on Hold as AES Scrambles for License

A $230m 7-year project loan for AES Campiche, a $500m Chilean hydropower project, is in limbo as the company grapples with the country’s environmental agency and supreme court, which have revoked a critical license. The loan was all but wrapped up when the issue arose within the past several weeks, says a banker on the deal. Banks have signed commitments for participation in the financing, being led by Calyon and Fortis, but it has not funded and will not do so until the issue is resolved. Campiche’s project financing (PF) was launched in February as a $445m 10-year loan, but was shrunken and shortened in April to $220m and 7-years. Pricing has remained unchanged at Libor plus 350bp stepping up to 400bp in year 7. Fitch has put AES Gener’s ratings on watch negative after the Chilean supreme court revoked environmental impact approval.