B&E represents Conexión Kimal Lo Aguirre in financing of new power line
Barros & Errázuriz has represented Conexión Kimal Lo Aguirre, as debtor, in connection with the partial financing of the construction and development of the new power transmission line called “HVDC Kimal-Lo Aguirre Line”.
The financing involved the following loans with the same commercial terms and conditions: (i) Equity Bridge Loan Agreement, under New York law, with The Hong Kong Shanghai Banking Corporation Limited (HSBC), as creditor for a total amount of USD$ 160,000,000; and (ii) intercompany loans, under Chilean law, with ISA Inversiones Chile SpA (ISA) and Transelec Holdings Rentas Limitada (Transelec) each for an amount of USD$ 160,000,000, including the first disbursement under each loan.
In this transaction, which took place on 25 April, Clifford Chance acted as international counsel to Conexión Kimal Lo Aguirre, and Garrigues and Mayer Brown acted as local and international counsel to HSBC, respectively.
The power transmission line called “HVDC Kimal-Lo Aguirre Line” will be the largest power transmission line in Chile and one of the largest power transmission lines in Latam. It will connect the future Kimal Converter Substation located in the Antofagasta region with the future Lo Aguirre Converter Substation located in the Metropolitan Region, which will greatly complement the current transmission capacity from the north of the country to the centre-south and will implement a new power transmission technology in Chile (HVDC).
B&E’s team was led by partner Francisco de la Barra (pictured), with support from partner Fernando Garrido, senior associate Nicole Ubal, director Magdalena Munita, and associates Patricia Rivas, María José Bordalí, María Trinidad Sharp, Raimundo Ruiz and Vicente Rencoret.
