Milbank LLP advised InterEnergy in a landmark first-time issuer Rule 144A green project bond financing by its portfolio wind and solar power generation companies UEP Penonomé S.A. as issuer, and Tecnisol I, S.A., Tecnisol II, S.A., Tecnisol III, S.A., and Tecnisol IV, S.A. as guarantors. The transaction consisted of an issuance of $263 million worth of 18-year Rule 144A green project bonds with a yield 6.5%.
InterEnergy owns and operates renewable power generation and distribution assets, and fuel distribution and logistics businesses throughout Latin America and the Caribbean. UEP Penonomé II and Tecnisol I, Tecnisol II, Tecnisol III and Tecnisol IV owns and operates the largest unconventional renewal energy generation business in Central America. The projects consist of five wind farms with a combined capacity of 215 MW and four photovoltaic (PV) solar projects with a combined installed capacity of 40MW.
The Milbank deal team was led by Global Capital Markets partner Carlos Albarracín and Global Project, Energy and Infrastructure Finance partner Jaime Ramirez, with support from Pablo Richards and Marcela Barba. The team also included Alternative Investments partner John Williams and associates Elizabeth Martinez and Devan Zorn and Tax partner Andrew Walker and associate David Hanno.
Mr. Albarracín said: “Milbank is pleased to have advised InterEnergy on this landmark green project bond financing to further support Interenergy’s project development and expansion efforts in Latin America. There has been a significant increase in sustainability investments throughout the region and we hope this transaction paves the way for more green project bonds in the region.”
Mr. Ramirez added: “This is one of many transactions we have closed in the Latin America power and energy sector in 2020 and we look forward to further increased activity in 2021. We are honored to have represented the largest unconventional renewable energy company in Central America in this innovative financing.”
Milbank continues to have the lead legal role in many of the most significant Latin American power, energy and infrastructure matters. This is the third green bond transaction the firm has recently advised on, including our representation of Banco Continental in the first-ever sustainability bond by a Latin American financial institution and FS Bioenergia in its inaugural green bond offering.