Peru Power Plant Targets Project Bond

Sponsors of the Eten power project in Peru are planning to raise $145m through a senior secured bond due 2034 to fund construction, according to Fitch, which assigns a BBB minus rating. The Planta de Reserva Fria de Generacion de Eten project is sponsored by Cobra Peru, a unit of Spain’s ACS, and EMCE. The senior secured notes come with a 20% credit guarantee from development bank CAF. The 223 megawatt simple-cycle natural-gas fired power plant will be located in Peru’s Chiclayo province, and was awarded to a consortium comprised of Cobra and Enersa in 2011. BTG Pactual is managing the transaction.