Chile power project gets backing
Chile’s Transmisora Eléctrica del Norte (TEN) has received US$854mn of debt capital for the construction, operation and maintenance of a 600km power transmission line.
The loan is structured in four different tranches of amounts ranging from US$50mn to US$460mn and tenors from three to 26 years.
Nine local and international banks, as well as a US insurance company, are involved in the funding. GTR can confirm the participation of KfW-Ipex Bank, and Reuters previously named Sumitomo Mitsui Banking Corporation (SMBC), Bank of Tokyo-Mitsubishi, Mizuho Bank, Banco de Chile, BCI, Banco Santander-Chile and the Prudential Insurance Company of America as other participants.
The line will connect Chile’s northern grid (SING) with its central grid (SIC) – two power systems that have always operated independently of each other. According to KfW, “interconnecting them will lead to significant stabilisation of the overall system, cost reductions and, by increasing the feed-in capacity, greater competitiveness in Chile’s booming renewables sector”. The line should be operational at the end of 2017.
TEN is jointly owned by France-headquartered Engie and Spain-based Red Eléctrica.take me back