The construction of a transmission line between two Uruguayan cities has received a “green loan” worth US$81mn.
The borrower, Terna, will build a 500kV transmission line between Melo and Tacuaraemb. The financing comes in two tranches: a US$56mn loan with a 17-year tenor, priced at six-month US Libor, disbursed by the Inter-American Development Bank (IADB); and a US$25mn, 15-year loan from BBVA, priced at six-month US Libor plus 210 basis points.
Vigeo Eiris, a green accreditor, has categorised the package as a “green loan” because the power line will be energy efficient and will consume energy from renewable sources.
Law firm Milbank advised Terna, an Italian group, while the company received legal advice in Uruguay from Guyer & Regules. Clifford Chance and Ferrere advised the IADB, while Hughes & Hughes advised BBVA Uruguay.