Latin American Renewables Deal of the Year 2011: T-Solar Peru
01 03 2012
T-Solars $165 million financing for 44MW of Peruvian solar photovoltaic capacity is the countrys largest solar deal to date. The financing, which closed on 2 December, but has yet to draw, involves a direct loan from the Overseas Private Investment Corporation, with Assured Guaranty providing a partial guarantee of Opics exposure. The deal is the best example yet of how monolines and export credit agencies could stimulate activity in emerging markets renewables.
The 22MW GTS Majes and 22MW GTS Reparticion thin-film PV plants are located on a 206-hectare site in the Arequipa region of southern Peru. They have a 20-year sovereign-backed contract for 75GWh per year that Osinergmin awarded to the sponsor in February 2010. Under the terms of the agreement, the plants will sell electricity on the local spot market and the government will pay the difference between the rate they receive and the contracted offer price.
The financing is split between a $131 million 19-year senior loan from Opic and a $14.3 million subordinate mezzanine tranche. Opic will fund its loan by issuing certificates of participation, which have the same repayment schedule as the loan, but carry...
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