GE Energy Financial Services Secures Project Financing For The Expansion Of Los Guindos Power Plant In Chile
- GE Power to install a second 9E.03 gas turbine at Los Guindos power plant.
- The 9E heavy duty gas turbines provide increased power and performance.
SANTIAGO, CHILE - APRIL 05, 2018 - GE (NYSE: GE) unit, GE Energy Financial Services secured $150 million project financing to refinance and expand the Los Guindos* open-cycle thermoelectric power plant in central Chile.
This is a milestone for GE Energy Financial Services, 75 percent owner of the existing 139-megawatt open-cycle Los Guindos Power Plant, and its local co-owner, The Ingelec Group which operates the plant. The expansion of the power plant will nearly double its overall capacity to approximately 275 megawatts with the installation of a second GE 9E.03 turbine, equipped with dual gas-liquid fuel combustion system, DLN emissions control, A39 generator and control systems, for an increased power and performance.
The transaction was jointly led by MUFG, Sumitomo Mitsui Banking Corporation (SMBC) and Natixis, with Banco BICE providing a peso-denominated VAT facility. The financing is being used in part to fund the expansion of the power plant, but also to optimize the capital structure by refinancing the existing local market debt facility.
GE Energy Financial Services’ Global Capital Advisory (GCA) team, which sources financing from third parties including export credit agencies, development finance institutions and other equity providers and commercial banks, led the debt raise on behalf of the sponsors.
Bob Psaradellis, Head of GCA at GE Energy Financial Services, said, “This transaction marks another milestone for our successful partnership with The Ingelec Group. With revenue for Los Guindos underpinned by long-term stable capacity payments, it made sense to look to international lenders that are active in longer tenors to provide this financing. GE’s strong global relationship with these institutions helped to ensure the right outcome.”
Los Guindos has been in operation since July 2015 and was developed and constructed by subsidiaries of The Ingelec Group, a leading player in the construction of energy infrastructure projects in Latin America including power plants, transmission lines and sub-stations. GE Energy Financial Services acquired a 75% stake in the project from The Ingelec Group in February 2016, with a strategic plan to increase capacity. The expansion work will be undertaken by Inprolec, the EPC subsidiary of The Ingelec Group.
This transaction demonstrates GE’s commitment to meeting customer needs in Latin America with both capital and technology solutions. Upon completion of the expansion in Spring 2019, Los Guindos will continue to benefit from the well-established regulated capacity market regime in Chile, which was designed to provide a stable supply of backup power to supplement the intermittent sources of renewable energy in the region, in particular hydro and increasingly wind and solar.
Note to Editors:
*In 2016, GE Energy Financial Services partnered with The Ingelec Group, an international conglomerate based in Chile by acquiring a 75 percent stake in the power plant. Situated near Cabrero, 490 kilometers south of Santiago in the Bío Bío region of Chile, Los Guindos operates as one of the most efficient back-up power plants in the region with GE’s 9E dual-fuel turbine.
About INPROLEC S.A.
Inprolec S.A. is an electricity sector engineering and construction company based in Santiago, Chile, offering a variety of services and specializing in engineering, procurement and construction of energy infrastructure assets, particularly substations, transmission lines and generation units. Inprolec has gained recognition by its high ethical standards, for building large and complex projects and for having a positive impact on its customers, employees and the communities where it works. www.inprolec.cl
About The Ingelec Group
The Ingelec Group (TIG) is an international conglomerate with a deep regional presence in South America throughout Chile, Bolivia, Brazil and Argentina. The conglomerate operates in the construction, industrial and utilities sectors. TIG has vast experience in the construction of energy infrastructure projects, and has built several transmission lines, substations and power generation plants over the past 30 years.
About GE Energy Financial Services
A strategic GE Capital business, GE Energy Financial Services is a global energy investor that provides financial solutions that help meet the world’s energy needs. Drawing on its technical know-how, financial strength and strong risk management, GE Energy Financial Services invests in long-lived and capital intensive projects and companies. The firm has 35+ years of experience managing energy assets through multiple economic cycles, and a global portfolio that spans conventional and renewable power, and oil and gas infrastructure projects.
GE Energy Financial Services is part of the GE Store and is able to provide unique customer value by leveraging GE’s industrial energy heritage and strong technology footprint to offer access to capital and expertise. It is headquartered in Stamford, CT with regional hubs in London, Houston, Hong Kong and Nairobi. More information: www.geenergyfinancialservices.com; Twitter @GEEnergyFinServ.
GE (NYSE: GE) is the world's Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com.