Odebrecht Energia has secured US$774mn in debt to finance its Chaglla hydroelectric power plant in Peru.

The finance is part of an overall project financing project, worth US$1.2bn, which will be used to construct the 406MW project on the Huallaga River.

The debt was arranged by BNDES, Brazil’s development bank and the Inter-American Development Bank (IADB – which made a direct loan of US$150mn). There were six other banks involved in the lending, including BNP Paribas, Sumitomo Mitsui Banking Corporation (SMBC) and Cofide (the Peruvian development bank).

In May, the Chaglla project raised a bridge loan of US$400mn which was to mature in July. The loan was arranged by BNP Paribas and also involved BBVA, Société Générale, SMBC and DNB. The margin was around Libor plus 300bps.