Clifford Chance counsels IDB Invest on electricity tariff purchase facility
Clifford Chance has counselled IDB Invest as registered purchaser in connection with an A/B purchase facility of up to US$2.4 billion for the sale and purchase of electricity tariff collection rights issued by the Chilean Government administered Tariff Stabilisation Fund under Chile’s third wave of tariff stabilisation regulations.
Through the facilities provided to 26 power generation companies in Chile, IDB Invest has agreed to purchase over 99% of the electricity tariff collection rights to be issued by the Tariff Stabilisation Fund.
The firm also advised Goldman Sachs & Co. LLC, as sole global coordinator and arranger of the B-purchase facility, and Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Itau BBA USA Securities Inc. as joint bookrunners in connection with the offering by a special purpose vehicle incorporated in Luxembourg of USD $1.4 billion aggregate principal amount of 5.580% notes due 2035, and Amicorp Group in various capacities as agent, as part of the securitisation of the aforementioned electricity tariff collection rights.
This is the largest B and mobilisation bond issue by IDB Invest and one of the largest private issuances in the capital market with funds earmarked for Latin America to date.
The transaction will help ensure the stability of the Chilean energy system by addressing the immediate liquidity and long-term financial sustainability of electricity utilities and will benefit consumers considered vulnerable by allowing a controlled transition to market prices for electricity services.
Clifford Chance’s team advising IDB Invest included partners Fabricio Longhin (pictured left) and Jonathan Zonis (pictured centre, left), associates Paula Ferreira, Agata Radajczyk, David Rondon and foreign law clerk Fernando de Aguiar. The team advising the joint bookrunners included partner Hugo Triaca (pictured centre, right), associate Joyce Moore and foreign law clerk Cristian Ragucci. The team advising Amicorp included counsel Alberto Haito (pictured right) and associate Jorge Vázquez Navarro.
Additional support from Clifford Chance’s global network was provided by partner Avrohom Gelber and associate Wei Bin Tan on Tax matters; partner Paul Koppel and associate Ivona Dimov on ERISA; partner Jefferey LeMaster on ’40 Act; partners Gareth Old and Mark Pesso on True Sale Matters; partner Marc Mehlen and senior associate Marie-Elise Gueble from Luxembourg; and senior associate Robin Houtveen from Amsterdam.
