Natixis Closes Marcona & Tres Hermanas Financings
Marcona is Peru’s First Commercial-Scale Wind Project to Achieve Commercial Operations
Natixis today announced the closings of two financings for wind farms in Peru, Parque Eolico Marcona (Marcona) and Parque Eolico Tres Hermanas (Tres Hermanas). For these “twin” projects, Natixis acted as Sole Institutional Tranche Underwriter; Sole Subordinated Loan Placement Agent; and Sole Hedging Provider; and, together with Corporacion Andina de Fomento (CAF), acted as Financial Advisor and Mandated Lead Arranger.
In addition to Marcona being the first commercial-scale wind project to achieve commercial operations in Peru, these two financings, for a total of $254 million, are also noteworthy because they comprise various debt instruments:
- Junior debt and senior debt, including a fixed-rate tranche specifically designed to attract institutional investors
- A variety of sources of liquidity through the involvement of an export credit agency, several multilateral institutions, and a commercial bank
- A long tenor which approaches the concession length and fits with the Sponsor’s needs.
The Marcona project consists of the design, construction, financing, operation and maintenance of a 32.1MW wind farm, Peru’s first, located in San Juan de Marcona, Ica, Peru, and the construction of the associated substation and transmission line. The Tres Hermanas project consists of the design, construction, financing, operation and maintenance of an adjacent 97.15 MW wind farm, and all civil engineering works, including access roads, and works on the associated substation.
Marcona started operating in April 2014 and Tres Hermanas is expected to begin operations in December 2015. Once in operation, the combined project will be Peru’s largest wind farm by installed capacity, at 129.25 MW.
Cobra, the Sponsor, is a subsidiary of the ACS Group, one of the world’s leading construction, infrastructure, and services companies. In December 2012, Natixis and CAF provided a construction bridge loan to the Marcona project in order to finance the early construction costs.
Natixis’ Pascal Soldaini, Managing Director, Head of Global Infrastructure & Projects Latin America, said, “Natixis is pleased to have supported its valued client, Cobra, on these two landmark transactions with a tailor-made financial structure combining various sources of financing.” Natixis’ Jean-Philippe Adam, Head of the Latin American Platform, said, “The Marcona and Tres Hermanas financings demonstrate the commitment of Natixis to support our clients worldwide, and especially in Latin America which is an expanding region for the Bank.”