CVE Chile closes PMGD junior financing of solar PV projects totaling US$22.5 million

Marseille, November 27, 2020 – CVE Chile has successfully closed junior facilities with a major US investor focus on advancing positive social and environmental change. This financing, totaling US$22.5 million over a period of 8 years, and amortizable over 15 years, concerns a first batch of 10 power plants already in operation in Chile with an aggregate capacity of approx. 48 MWp and will be followed by the financing of new projects in operation, as part of a long-term approach.

A portfolio of PMGD assets

The CVE PMGD portfolio consists of assets operating under Chile’s special regime for distributed generation projects (the “PMGD” regime). PMGD projects are entitled to be remunerated for their generation at a regulated stabilized price. In addition to this financing package of 18 PV plants under operation and construction (around 100 MW), CVE counts with other 20 PMGD projects under development, summing around 150 MW of new projects, to enter into operation between 2021 and 2022.

According to CVE, the portfolio is in line with their vision of the renewable energy market, based on the decentralization of production and a direct energy sales model through private contracts, in response to the needs of businesses and local authorities. This financing consolidates CVE’s long-term presence in Chile and its position as a leader in the PMGD market.

Financial expertise and projects’ attractivity as key of success

« In the continuity of the Senior project financing closed in November 2019, CVE’s financial expertise as well as the attractiveness of our Chilean projects allowed us to complete this transaction on an international scale, especially in a particular context related to COVID-19 health crisis and given the complexity of the interactions between Junior and Senior financing” – explained Cyril Gilot, Financing and Investments Director at CVE.

“The success of the financing operations is key to supporting CVE Chile’s growth, which continues at a sustained pace, with the objective of quadrupling the fleet by 2025 to 460 MW,” added Pierre Boulestreau, CEO of CVE Chile
The PMGD regime was created in 2005 with the goal of incentivizing greener and more distributed electricity generation. The CVE PMGD Portfolio contributes these goals, and more broadly to the country’s target of 20% of installed electricity generation capacity being from non-conventional renewable sources by 2025.