Bank of China participates in $475 million syndicated loan for 374.65MW Loma Blanca I Wind Farm, Loma Blanca II Wind Farm, Loma Blanca III Wind Farm, Loma Blanca Wind Farm, and Miramar Wind Farm Project

Project narrative

On April 29, 2019, Parque Eólico Loma Blanca I S.A., Parque Eólico Loma Blanca II S.A., Parque Eólico Loma Blanca III S.A., Parque Eólico Loma Blanca VI S.A. and Parques Eólicos Miramar S.A. -- five special purpose vehicles and wholly-owned subsidiaries of Goldwind Science & Technology Co., Ltd. (a multinational wind turbine manufacturer headquartered in Beijing) -- signed a $475 million, Sinosured-backed syndicated loan with Bank of China and Banco Santander, S.A. for the 374.65MW Loma Blanca I Wind Farm, Loma Blanca II Wind Farm, Loma Blanca III Wind Farm, Loma Blanca Wind Farm, and Miramar Wind Farm Project. The borrowing terms of the loan are unknown. However, it is known that the loan was insured by SInosure and backed by a repayment guarantee from Goldwind Science & Technology Co., Ltd. The borrowers were expected to use the loan proceeds to finance a commercial (EPC) contract between Powerchina International Group Limited, Goldwind Science & Technology Co., Ltd., and the borrowers, which was signed in July 2018. The purpose of the project was to (a) construct the Loma Blanca I, II, III and VI wind farms in southeast Patagonia's Chubut province between the towns of Rawson and Trelew; and (b) construct the 96MW Miramar Wind Farm in the town of Miramar in the south of the Province of Buenos Aires. The Loma Blanca I wind farm has 16 turbines and installed power generation capacity of 51.2MW. The Loma Blanca wind farms II and III feature 32 turbines and each has 51.2MW of installed power generation capacity. Loma Blanca VI, the largest of the wind farms and the one closest to the tourism resort of Puerto Madryn, has 32 turbines and 102.4MW of installed power generation capacity. The Miramar wind farm has 29 turbines 98.6MW of installed power generation capacity. Upon completion, the five wind power plants were expected to to provide 1.6 billion kilowatt-hours of clean electricity each year, meeting the electricity needs of 360,000 households, and reducing Argentina's use of 650,000 tons of coal and carbon emissions by 1.8 million tons each year. Powerchina International Group Limited and Goldwind Science & Technology Co., Ltd. were the EPC contractors responsible for project implementation. Construction began in July 2018. The project was originally expected to reach completion by the end of December 2019. However, the Covid-19 pandemic led to project implementation delays. All five wind power plants were ultimately connected to the grid between November 2020 and March 2021. Then, on February 28, 2022, the five borrowers (SPVs) signed a $270 million syndicated loan agreement with Banco Santander, S.A. Hong Kong Branch, China Citic Bank International Limited (“CITIC”) and Bank of China Limited, Panama Branch to refinance their outstanding debts under the 2019 syndicated loan agreement. The 2022 loan was collateralized against a pledge on the shares of each of the borrowers, fiduciary assignments of rights of payments and receivables under certain project documents -- including but not limited to, certain power purchase agreements signed by borrowers and CAMMESA (of each of the borrowers to special securities’ trusts).