August 1 (Renewables Now) - ARCO 3 SpA, a vehicle owned by affiliates of private equity firm Arroyo Energy Investors LLC, has secured long-term financing for a solar portfolio consisting of up to 70 MW of small distributed generation (DG) assets in Chile.
Senior loan facilities of USD 69.1 million (EUR 62.2m) in total have been provided by French investment bank Natixis SA (EPA:KN), which acted as sole lead arranger, hedge provider, administrative agent and an underwriter for 100% of the transaction. The lender said Wednesday that the financing had been arranged so that ARCO could add more photovoltaic (PV) projects to the portfolio.
The assets in the so-called ARCO Solar PMGD Portfolio operate under the Chilean PMGD scheme which covers generation units of up to 9 MW connected to medium voltage networks. Such small power plants are usually installed close to residential demand centres, often in small towns. They ensure greater competitiveness in the electricity sector through the participation of new players and are expected to help Chile decarbonise its mix.
Apart from the Solar PMGD portfolio, ARCO also owns the 115-MW Arrayan wind project, the 104-MW Conejo solar project and 22 MW of wind operating under the PMGD regime in Chile.
(USD 1.0 = EUR 0.9)