Enel Green Power signs a loan agreement with BBVA in ChileMarch 25, 2013
The US$ 100MM term loan was envisaged to finance the company expansion in the renewable-energy sector.
Enel Green Power S.p.A. (hereinafter EGP), through its Chilean subsidiary Enel Latin America Chile Ltda, finalized with BBVA Chile a US$ 100MM financing agreement earmarked for supporting part of the company's industrial plan to be developed in the country in the upcoming years.
The five-year loan agreement, to be drawn by the end of 2013, has an applied interest rate in line with market benchmark and will be collateralized by a parent company guarantee, issued by EGP.
In 2012 EGP invested around US$ 300MM in Chile to meet the financial requirements of its wind farms, with an expected installed capacity of around 250MW to be reached in the next few years in the country.
The transaction further consolidates the excellent relationship between Enel Group and BBVA, that during the past years has constantly supported the successful and increasing activity of the company in Latin American countries, providing EGP a wide range of products, endorsing the firm's business.
The support that BBVA gave to EGP in Chile will enhance BBVA opportunities to leverage on this deal in order to obtain cross sell opportunities and replicate the transaction in other geographies where EGP is investing heavily such as Mexico.