This loan will be used for the construction of CEME1 solar PV plant and the conversion of the 132MW Los Vientos diesel-fired plant to natural gas in Chile by Generadora Metropolitana. 

The project financing is provided by Credit Agricole, DNB, SMBC, MUFG, ING, and BCI, with each bank contributing roughly $95.5 million. In addition, the project financing is structured as a club deal and has a tenor of around seven and a half years. 

The financing is linked to a 15-year PPA originally secured for Octopus LNG, which Generadora Metropolitana was due to develop and which was made up of the Penco Lirquen floating regasification terminal in Concepcion Bay and the 640MW El Campesino gas-fired project in Bulnes, Biobio. The project was abandoned due to the loss of an environmental permit for part of the scheme. As part of negotiations to retain the PPA despite the cancellation of Octopus LNG, Generadora Metropolitana agreed to build the CEME1 solar plant. The PPA was awarded in a technology-neutral auction and has a tariff of over $100/MWh. The conversion of Los Vientos is expected to be completed by the end of 2022 and CEME1 is expected to be commissioned in 2023.