HSBC and DNB have closed a €90mn trade finance facility for Irish company Mainstream Renewable Power, a developer of wind and solar power plants.
The facility is funded equally by the two banks, and could rise to as much as €200mn, as Mainstream has the option to bring in new lenders, subject to approvals. Mainstream says that the agreement represents one of its largest corporate debt raises, and will be used to support bid bonds, performance bonds and equity commitments for its global projects.
The first use under the new facility will be to support Mainstream’s equity commitments to construct its 569MW Condor portfolio in Chile, which is the first phase of its 1.3GW Andes Renewables platform of fully contracted wind and solar projects. “This global facility gives us the freedom to pursue large-scale development opportunities around the world,” says Andy Kinsella, Mainstream’s group chief executive.
Commenting on the deal, Michael Lalor, head of corporate banking Ireland for HSBC, says: “The facility will initially support the development of a significant portfolio of renewable energy assets in Chile and is a very positive step forward in advancing our global green credentials while also highlighting the strength of our network and trade finance expertise.”
In August 2016, Mainstream was one of the main beneficiaries of the most competitive and biggest electricity tender in Chile’s history. The projects, awarded via 20-year term contracts, are located throughout the country and are scheduled to begin supplying low-cost, clean energy into the grid from January 2021.