Private equity firm Arroyo Energy closed one of the largest green loans in Latin America
Arroyo Energy Investors, a power and energy infrastructure-focused private equity firm, closed the refinancing of two of its Chilean renewable energy operating assets: the 101MWdc PV plant Conejo Solar, and the 210MW wind farm Parque Eólico El Arrayan. The transaction comprised of a $399 million green loan facility, one of the largest green loans to date in Latin America.
Conejo Solar and Parque Eólico El Arrayan have been operating since 2014 and 2016, respectively, and play an important role in supplying green electricity to Minera Los Pelambres, one of the largest copper mines in the world.
Crédit Agricole CIB acted as Joint Bookrunner, Co-Structuring Bank, Mandated Lead Arranger, Hedge Provider, Green Loan Coordinator and Administrative Agent on the refinancing transaction.
With this transaction, the Bank continues to build green momentum in Latin America. In October, Crédit Agricole CIB acted as Joint Mandated Lead Arranger & Bookrunner for CEMEX’s $3.2bn sustainability-linked loan, the largest sustainability-linked transaction in Latin America and the emerging markets.
“It was a pleasure to work with Arroyo Energy on the refinancing of a portfolio of two renewable assets in Chile with a top miner offtaker. This opportunity reinforces Crédit Agricole CIB long and successful track record in Chile in this sector as well as our leadership in highly structured financings in Latin America.”
Ignacio Del Rio, Managing Director, Energy and Infrastructure – Latin America Group
“This recently closed transaction demonstrates Crédit Agricole CIB ’s ability to structure, negotiate and successfully syndicate a transaction during an unprecedented and volatile time in the Latin American loan market due to Covid-19. The transaction was oversubscribed by 1.2x and was successfully distributed to a group of banks across different tiers based on the merits of Chile, the structuring of the transaction and quality of the underlying assets, and terms reflecting our pulse to the loan market – a testament to the Deal Team’s ability to deliver a superior transaction to our clients.”
Jaime Frontera, Managing Director, Head of DOD – Loans Syndications for Latin America
“We are honored to have supported the refinancing of these two renewable assets in Chile, which play a crucial role in supplying low-carbon electricity to Minera Los Pelambres. Crédit Agricole CIB is proud to have acted as the Green Loan Coordinator. This green label highlights Arroyo Energy’s leadership in promoting more sustainable operations in the Chilean mining sector.”
Charlotte Peyraud, Vice President, Sustainable Banking Americas
Green Structuring Advisor for first North American railcar lessor to launch a Green Financing Framework
Bank of China issued the world’s first ICMA handbook-linked Transition Bond
Green, Social and Sustainability bonds market 2021 outlook: The new sustainable borders