Latham & Watkins Advises HSBC on Landmark Renewables Transaction in Chile

The deal is the first US private placement for a portfolio of renewable assets under Chile’s distributed generation PMGD regime.

January 19, 2022

Latham & Watkins advised HSBC Asset Management as investor in a US private placement by InterEnergy’s project subsidiaries in Chile. The proceeds of the notes were used to refinance InterEnergy’s portfolio of solar and wind assets that operate under Chile’s special regime for distributed generation projects, Pequeños Medios de Generación Distribuida (PMGD). The portfolio comprises 12 solar photovoltaic projects and two wind farms, all fully operational, with a total capacity of 60MW.

The deal was the first private placement of notes for a portfolio of renewable assets under Chile’s PMGD regime. It was also one of the first cross-border financings of Chilean renewable assets subject to the recent PMGD reforms in Chile under Decreto Supermo No. 88, reflecting an innovative contractual structure to adapt to the regulatory changes.

Latham & Watkins LLP advised HSBC in the transaction with a deal team led by partner Guido Liniado and associate Carlos Ardila, both members of the firm’s Latin America Practice, with assistance from associate Francisco Lascurain and international visiting associate Andres Fonseca. Advice on tax matters was provided by partner Elena Romanova, with associate Lauren Bewley.

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