Reden and Natixis close second solar PV portfolio financing in Chile

The Reden PMGD 2.0 portfolio consists of solar projects that will operate under Chile’s special regime for distributed generation projects (the "PMGD Regime”). Each of the PMGD projects in the portfolio will have capacity of up to 9MWp and will be entitled to sell its energy output at the regulated stabilized price. The four initial solar PV plants in the portfolio have total capacity of 18.9 MWp. The financing structure provides Reden the flexibility to add projects to the portfolio, subject to meeting pre-defined eligibility criteria.

Natixis acted as Sole Lead Arranger, Hedge Provider, LC Issuing Bank and Administrative Agent, and provided a firm underwriting for 100% of the transaction.

“Even in the most uncertain and challenging economic environment, Natixis has managed to deliver a successful transaction, which fulfilled Reden’s expectations in terms of timing and financing conditions. It demonstrates Natixis’ leadership and deep knowledge of the Chilean energy market”, said Bernardo Leáñez, Project Finance Manager at Reden.

“This marks the sixth PMGD term financing for which Natixis has acted as Sole Lead Arranger over the past 16 months, representing approximately $500 million. These transactions further consolidate Natixis’ leadership among financial institutions in the PMGD space”, said Aitor Alava, Managing Director, Head of Infrastructure Finance, Latin America at Natixis.

The PMGD regime was created in 2005, with the goal of incentivizing more distributed and greener electricity generation.  The projects in the Reden PMGD 2.0 portfolio also contribute to the country’s broader energy transition as it progressively retires coal plants and heads towards long-term carbon-neutrality.