German state-owned lender KfW Ipex-Bank is lending $120M to Transelec Concesiones, Chile’s largest power grid operator, to finance four power grid projects. With Export Development Canada and Japanese bank MUFG providing additional debt capital of around $240M, the total investment volume comes to approximately $360M.
The main construction and operating components will be supplied by German firm Siemens, while Spanish company Abengoa and French construction firm Engie are also each party to one of the projects.
Transelec will use the funds to build the Nueva Charrúa and Nueva Puerto Montt substations and their associated transmission lines, and to build and expand two complementary lines including the Los Changos 1 and Los Changos 2 substations.
Source: Global Trade Review / Estrategia / Latin Finance