Bank of China contributes to $171 million syndicated loan for refinancing 155MW La Higuera Hydropower Plant

On February 28, 2019, Hidroelectrica La Higuera S.A.(HLH) — a special purpose vehicle and joint venture of Pacific Hydro Chile S.A. (50% equity take) and Statkraft Norfund Power Invest (50% equity stake) — signed a $171 million syndicated term loan agreement with Bank of China, DNB Bank ASA, the New York Branch of Natixis, and Sumitomo Mitsui Banking Corporation (SMBC) for the 155MW La Higuera Hydropower Plant Refinancing Project. The loan carried a 10-year maturity and an unknown grace period and interest rate. The borrower was expected to use the proceeds of the loan to refinance a loan that it previously contracted with the International Finance Corporation (IFC) for the construction of the 155MW La Higuera hydropower plant. HLH is responsible for building, owning and operating the 155 MW La Higuera hydroelectric power plant located in the Tinguiririca Valley east of the city of San Fernando. The run-of-the-river hydro power plant project diverts the Tinguiririca River and its major tributary Azufre just upstream of their confluence. At a gross head of 367 meters and a design flow of 50 m3/s, the installed capacity is 155 MW in two generating units equipped with vertical Francis turbines in a surface powerhouse.

Additional details

1. The size of Bank of China’s contribution to the $171 million syndicated loan is unknown. For the time being, AidData assumes that the four known members of the syndicate made equal contributions ($42.75 million). 2. The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture this Bank of China loan commitment. 3. Hidroelectrica La Higuera S.A. (HLH ) is a 50:50 joint venture formed in May 2004 by Pacific Hydro Limited (PHL) and Statkraft Norfund Power Invest AS (SNPI) — collectively, the project sponsors. Pacific Hydro and Statkraft is an Australian-based company owned by China State Power Investment Corporation (SPIC). Statkraft is a Norwegian-based company.

Number of official sources

7

Number of total sources

11