Mainstream Renewable Power Closes US$280m Construction Finance Facility with AMP Capital IDF IV
- Proceeds used to fund portion of construction equity to build out 1.3 GW Andes Renovables wind and solar platform, one of the largest renewable energy platforms in Latin America
- Transaction takes place alongside first drawdown under the US$630m Huemul senior project financing announced in September
- A sixth bank, SMBC joins the senior banking consortium alongside IDB Invest, KfW IPEX-Bank, DNB, CaixaBank and MUFG, with Santander providing a VAT facility
14 October 2020, Dublin: Global wind and solar development company, Mainstream Renewable Power (“Mainstream” or “the Company”), has closed a US$280 million “mezzanine” construction finance facility with leading alternative lender AMP Capital Infrastructure Debt Fund IV (“IDF IV”). The AMP Capital facility complements the US$1.25 billion of senior project finance debt raised to date through two separate financings completed in October 2019 and August 2020.
The US$280 million mezzanine financing is structured in three separate tranches with the “Condor” and “Huemul” tranches drawn at closing, the “Copihue” tranche is expected to be drawn once that platform reaches financial close in H1 2021.
Andes Renovables is a c.US$1.8 billion, three phase wind and solar generation platform comprised of seven onshore wind and three solar PV generation assets. The 570 MW first phase, “Condor”, reached financial close in 2019 and construction is already 43% complete. The 630 MW second phase, “Huemul”, is comprised of three onshore wind and two solar PV generation assets. The next and final phase, “Copihue”, is comprised of one further wind asset with a 100 MW capacity.
All conditions required to allow for the first drawdown under the US$630 million Huemul senior project financing were satisfied.
Paul Corrigan, Mainstream’s Chief Financial Officer, said:
“Mainstream is delighted to be working with AMP Capital to finance one the largest wind and solar platforms in Latin America. This deal follows closely on the heels of the US$630m Huemul senior project financing which we announced at the beginning of September.
We are proud of the support Mainstream continues to receive in the international financial community. We place great value on our large group of capital providers – ranging from commercial banks, to insurance companies and sureties, to alternative lenders – who have worked together seamlessly to provide us with more than US$1.5bn of flexible and efficient financing structures that enable Mainstream to focus our efforts on building out one of the largest independent renewable energy platforms in the world.”
Patrick Trears, Global Head of Infrastructure Debt at AMP Capital, said:
“AMP Capital is extremely pleased to provide Mainstream with $280m of mezzanine debt to finance the construction of the Andes Renovables platform. Mainstream is a world leader in renewable energy and is exactly the type of partner we seek to work with to provide innovative financing solutions. We look forward to helping Mainstream achieve its goal of bringing low cost, sustainable energy to communities globally.”
About Mainstream Renewable Power in Chile
In 2016, Mainstream was the biggest winner in Chile’s largest ever technology-neutral electricity auction, taking 27% of the total allocated capacity. Chile’s National Energy Commission awarded Mainstream a 20-year index-linked, US dollar denominated contract, to supply 3,366 Gigawatt Hours of firm power starting in 2021. Mainstream has also delivered an additional 332 MW of wind generation in Chile via the Aela Platform with its joint venture partner Actis, delivering its first wind farm into commercial operation in 2014. Mainstream has an additional 2,700 MW of wind and solar PV generation assets under development in Chile.
Detailed Project information
|Andes Renovables Platform|
|Phase||Name||MW onshore wind||MW Solar PV||Commercial Operation|
|1||Cóndor||3 assets (426MW)||1 asset (145MW)||2021|
|2||Huemul||3 assets (425 MW)||2 assets (205 MW)||2021 – 2022|
|3||Copihue||1 asset (100 MW)||n/a||2022|
|951 MW (onshore wind)||350 MW (solar PV)|
About Mainstream Renewable Power
Mainstream Renewable Power is the world’s only independent developer of utility-scale wind and solar power assets with a global footprint. The company has a high-quality portfolio of more than 12 GW of wind and solar assets across Latin America, Africa, Asia Pacific as well as the Offshore wind sector globally.
Mainstream has delivered more than 1.1 GW of wind and solar assets into commercial operation and is currently constructing a further 1.75 GW across Latin America and Africa.
In Chile, Mainstream’s wholly-owned 1.3 GW of fully contracted wind and solar assets are on track to reach commercial operation from 2021. In Africa, the company has delivered 710 MW of wind and solar assets into commercial operation in South Africa and currently has a 140 MW wind farm in construction there. Through its Lekela Power joint venture in Africa, it has 410 MW of wind assets in construction in Senegal and Egypt.
Mainstream is the most successful independent developer of offshore wind at scale globally. It has successfully consented Hornsea One (1.2 GW), the largest operational offshore wind plant in the world today; and developed the Hornsea 2 project (1.4 GW) before selling these projects and the entire Zone in 2015. Mainstream fully consented the Neart na Gaoithe offshore wind project in Scotland, 450 MW, currently under construction.
Mainstream’s Soc Trang 1,400MW offshore wind development in Vietnam is one of South East Asia’s largest renewable energy developments. The Company signed an agreement with Eni, the global energy company, to collaborate on potential renewable energy developments across Africa and Southeast Asia, with an initial focus on the UK’s offshore Round 4.
Mainstream has raised more than EUR3.0bn in project finance to date and employs more than 300 staff across five continents.
About AMP Capital
AMP Capital is a global investment manager with £105 billion in assets under management as of 30 June 2020 and more than 250 investment professionals. AMP Capital has a heritage and strength in infrastructure and real estate, and experience in fixed income, equities and multi-asset solutions. AMP Capital is owned by AMP Limited, which was established in 1849, and is one of Australia’s largest corporate pension providers.