Astris Finance is pleased to announce the successful financial closing of a non-recourse term facility for the 22 MWp PV Plant in Tacna and a 21 MWp PV Plant in Panamericana, close to the city of Arequipa in Southern Peru.

The Project will benefit from long-term Power Purchase Agreements, which have been allocated through a public tender process by the State of Peru in 2010. The Project is the second large-scale project-financed PV project in Latin America (after Spanish developer T Solar’s Majes and Repartición projects, also in Peru), and the first using crystalline silicon panels mounted on single-axis trackers. Astris advised on both financings.

Astris Finance acted as Financial Advisor to Solarpack and Gestamp Renewables throughout the structuring, placement, due diligence, documentation and closing of the Project equity and non-recourse project finance debt. OPIC is providing non-recourse financing for a total amount of c. USD 180 million for 18.5 years, funded through the placement in the US capital markets of certificates of participation guaranteed by the full credit of OPIC. The Project is also financed through equity provided by Solarpack, Gestamp, and by a regional spezialized fund.

The financing structure of the Project has been tailor-made to mitigate the impact of some specific aspects of Peruvian renewable energy PPAs on Project cash-flows. Despite difficult market conditions, the Project has been able to reach financial close by benefiting from the high liquidity of the US capital market and from OPIC support.

This Project is the 6th financial closing in 2012 by Astris Finance in Latin America. It marks a very successful year for Astris Finance, which has advised on a wide range of projects in Latin America including renewable energy, conventional power, accommodation PFIs and transportation infrastructure.