Financing Closes for OPIC-Supported Chilean Hydroelectric Power Plant
Friday, December 13, 2013
WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) recently closed a $245 million loan to Alto Maipo SpA for the construction of a hydroelectric power plant east of Santiago, Chile. The power plant will be a key generation facility for Santiago and reduce electricity costs, as well as greenhouse gas emissions, in a system that has become increasingly reliant on coal and diesel generation plants.
The OPIC loan, which is structured as a project finance credit facility for a tenor of 20 years, is part of a $1.2 billion lending facility enabled by a syndicate of multilateral and commercial banks including the Inter-American Development Bank, International Finance Corporation, Corpbanca, Banco de Crédito e Inversiones, Banco Itaú Chile, Banco del Estado de Chile, KfW Ipex-Bank GmbH and DNB Bank ASA.
The 531 MW run-of-river hydroelectric power plant will have a significant development impact on Chile, enhancing the reliability of electricity supply to central Chile, the country’s economic hub which includes Santiago, and creating both temporary and permanent local employment opportunities in a rural area of the country. Additionally, the project will improve system energy efficiency and assist in reducing the nation’s dependence on imported fossil fuels. Furthermore, the project has met and is required to maintain compliance with international environmental and social standards.
“This plant will make remarkable strides in providing Santiago, and rural areas of the central Metropolitan Region, with reliant, clean energy that will fuel both the residential infrastructure and the job economy in Chile, as well as in the U.S.,” said OPIC President and CEO Elizabeth Littlefield.
Virginia-based AES Corporation’s Chilean subsidiary AES Gener S.A., alongside U.K.-based Antofagasta plc.’s Chilean subsidiary, Antofagasta Minerals S.A., are sponsoring the project.
OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.
Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported more than $200 billion of investment in over 4,000 projects, generated an estimated $75 billion in U.S. exports and supported more than 277,000 American jobs. Visit www.opic.gov for more information.