Clifford Chance advises on the senior financing for the largest solar plant in Peru

Clifford Chance has advised global renewable energy company Solarpack Corporación Tecnológica on the USD 176.6 million senior financing for the San Martin PV plant, the largest solar plant in Peru.

The financing, signed with BBVA, BNP Paribas, Crédit Agricole and Natixis under a project finance structure, is the first renewable project in Peru financed on the basis of a Power Purchase Agreement (PPA) between private parties.

Moreover, the loan has been qualified as green financing under Solarpack’s Green Financing Framework, in accordance with the Green Loan Principles established by the Loan Market Association.

The San Martín solar plant, with a total installed capacity of almost 300 MW, is currently under construction and is expected to generate more than 819 GWh per year, equivalent to the annual electricity consumption of more than 440,000 homes. It will also prevent the emission of more than 564,000 tonnes of CO2 each year.

In addition to the senior financing package, Solar San Martín entered into a revolving credit facility for approximately USD 19 million, with BBVA as senior lender, to fund the tax requirements for the construction of the project.

The deal marks a significant milestone for Solarpack, as its largest project financing transaction to date. It reaffirms the company’s commitment to environmental sustainability and represents a step forward in its mission to provide sustainable and economically viable energy solutions for its customers.

The Clifford Chance cross-border team comprised partner José Guardo, senior associate Eduardo Sánchez, associate Gabriel Miranda and trainee Yago López, from Global Financial Markets (Madrid), along with counsel Patricio Abal and special legal consultant Pedro Buchanan, from Global Financial Markets (Washington DC).

Julia Gil