NEW YORK, Dec. 12, 2019 : CVE Chile and Natixis have successfully closed senior facilities totaling approx. US$87 million for the up-to-110MW portfolio of 20 solar photovoltaic (“PV”) plants in Chile (the “CVE PMGD Portfolio”).
The CVE PMGD Portfolio consists of assets operating under Chile’s special regime for distributed generation projects (the “PMGD” regime). PMGD projects are entitled to be remunerated for their generation at a regulated stabilized price. The seven initial solar PV plants in the CVE PMGD Portfolio are in operation (total 30 MWp). The financing structure provides CVE with the flexibility to add additional solar PV PMGD projects to the portfolio, subject to meeting pre-defined eligibility criteria. CVE has a further five plants that are under construction (total 20 MWp), and the company is in the process of obtaining the final permits for the remaining eight (total 50 MWp), all of which CVE expects to be added to the CVE PMGD Portfolio.
According to CVE, the Portfolio is in line with their vision of the renewable energy market, based on the decentralization of production and a direct energy sales model through private contracts, in response to the needs of businesses and local authorities. This financing consolidates CVE’s long-term presence in Chile and its position as a leader in the PMGD market.
This marks the third PMGD loan portfolio term financing arranged by Natixis; these transactions make Natixis a leader amongst financial institutions in the PMGD space,” said Aitor Alava, Managing Director, Head of Infrastructure Finance, Latin America at Natixis.
“CVE did not retain a financial advisor for this structured financing, which demonstrates CVE’s ability to secure the liquidity required for the group’s development in France and overseas in an increasingly competitive and challenging environment”,” said Cyril Gilot, CVE’s Chief Investment Officer.
The PMGD regime was created in 2005 with the goal of incentivizing greener and more distributed electricity generation. The CVE PMGD Portfolio contributes these goals, and more broadly to the country’s target of 20% of installed electricity generation capacity being from non-conventional renewable sources by 2025.
Natixis acted as Sole Lead Arranger, Hedge Provider, and Administrative Agent and Natixis provided a firm underwriting for 100% of the transaction.
CVE Chile has an increasingly strong presence in the Chilean electricity market. “In the coming years, we plan to keep a steady pace of development of around 45 MWp per year, reaching a renewable generating capacity of 250 MWp by 2023,” announced CVE Chile’s CEO, Pierre Boulestreau.
About CVE
As an independent producer of renewable energy, CVE develops, finances, and builds solar, hydro power plants and biomethane units to operate them on its own for their entire lifespan. The Group’s goal is to provide sustainable responses to the energy and environmental needs of businesses and communities, in a direct energy sales model. CVE is certified ISO 9001:2015 and ISO 14001:2015 for all of its activities. Based in Marseille, with regional offices in Toulouse, Rennes, and Fontainebleau, CVE has an international presence in Africa and through its subsidiaries in Chile and North America. The fleet in operation and under construction totaled 212 MW of cumulative power, for projected energy sales of €47 million. The company employs 145 employees
About Natixis
Natixis is a French multinational financial services firm specialized in asset & wealth management, corporate & investment banking, insurance and payments. A subsidiary of Groupe BPCE, the second-largest banking group in France through its two retail banking networks, Banque Populaire and Caisse d’Epargne, Natixis counts nearly 16,000 employees across 38 countries. Its clients include corporations, financial institutions, sovereign and supranational organizations, as well as the customers of Groupe BPCE’s networks. Listed on the Paris stock exchange, Natixis has a solid financial base with a CET1 capital under Basel 3(1) of €11.4 billion, a Basel 3 CET1 Ratio(1) of 11.5% and quality long-term ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings: A+). (1)Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise – without phase-in and including current financial year’s earnings and accrued dividend (based on a 60% pay-out).
Figures as at 30 September 2019
SOURCE Natixis
