Garrigues assists in $59m Green Loan for Matarani Solar Project
Garrigues Peru has assisted Natixis and IDB Invest in the execution of a USD $59 million Green Loan for GR Cortarrama, a subsidiary of Yinson Renewables.
The proceeds of the financing will be used to pay project costs related to the construction, operation, maintenance and other costs of the 97MW Matarani Solar Project in Arequipa, southern Peru, which reached Commercial Operation in September 2024. The Solar Project benefits from a 15-year Power Purchase Agreement (PPA) with a private offtaker. It is estimated that this plant will generate approximately 260 GWh of renewable energy per year, which would be enough to meet the energy needs of some 62,000 Peruvian households and avoid the emission of more than 56,000 tonnes of CO2 per year.
The deal was signed on 15 November, and is believed to be the first project finance transaction in Peru for a fully operational renewable energy plant backed by a private PPA.
Other participating firms were Cuatrecasas, as Peruvian advisor to GR Cortarrama, and Milbank as international advisor to Natixis and IDB Invest. Scotiabank Peru acted as Onshore Collateral Agent.
This transaction follows the acquisition by Yinson Holdings Berhad, through Yinson Renewables, of the Borrower from Spanish power generation company Grenergy Renewables, which took place earlier in January 2024.
The financing was structured as a mini-perm Project Finance facility. The Garrigues Peru team worked closely with the IDB and Natixis to analyse the project agreements, real estate rights and government approvals required for the project.
The USD $59 million loan is categorised as ‘green’ in accordance with the Green Financing Framework and Green Lending Principles, published by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association in February 2023.
Eirin Inderberg acted as in-house counsel to GR Cortarrama.
Garrigues’ team comprised partner Diego Harman (pictured), together with associates Carolina Perez-Taiman, José Ignacio Porto, Giancarlo Vignolo and Rodrigo Ramos.
