Chilean Wind Farm Locks Up Funding

Parque Eolico El Arrayan, sponsored by AEI, Pattern Energy and Antofagasta Minerals, has closed on $245m in financing, to support construction of the Chilean wind energy project. The package includes $210m in construction debt, a $15m letter of credit facility, and a $20m subordinated facility to pay value-added tax. The construction loans are set to convert at the completion of the construction into a 15-year term loan. The interest rate has not been disclosed. The project is expected to begin operation in 2014. Bank of Tokyo-Mitsubishi UFJ, Credit Agricole and Sumitomo Mitsui were MLAs, with Corpbanca providing the VAT facility. Danish export credit agency Eksport Kredit Fonden (EKF) provided guaranteed loans through a program it has for promoting exports. Skanska Chile is the contractor building the 115MW El Arrayan, located 250 miles north of Santiago. The farm will supply power to Antofagasta’s Minera Los Pelambres project.