Invenergy subsidiary Tealov has announced the completion of construction financing for the Cardal Transmission Project in Salto, Uruguay.
In partnership with IDB Invest, a member of the Inter-American Development Bank Group, Invenergy has pioneered a $67m (€56.5m) A/B Bond Loan that features a two-tranche finance structure.
The first is an $11.5m direct loan from IDB Invest.
The second is an indirect IDB Invest loan that totals $55.5m and is funded through a project bond issuance in the US Private Placement Market.
Prudential Private Capital was the sole investor for the bond issuance associated with the transaction.
This investment marks Prudential Private Capital’s first A/B bond transaction and the firm’s first time investing in an Invenergy project outside the US.
The bond issuance was rated Baa2 by Moody’s, achieving the highest rating allotted by the sovereign ceiling.
Invenergy vice president for project finance Rolanda Shine said: “We’re honored to continue to play an important role in the energy transformation in Uruguay.
“Invenergy’s ability to bring together strong, innovative financing partners like IDB Invest, who was instrumental in mobilizing this financing agreement, is key in achieving these project milestones.”
The Cardal Transmission project will consist of 55 kilometres of new 500kV high-voltage transmission line, 20 kilometres of new 150kV transmission line, a new 500 kV substation, and accompanying infrastructure.
The line will connect to the Punta del Tigre substation and a 150kV high-voltage line in Salto, Uruguay.
Invenergy issued a notice to proceed with construction of the Cardal Transmission project in July of this year and is targeting commercial operation by early 2023.
Once online, the project will be operated by the Uruguayan government-owned power company UTE under a 30-year lease agreement.
Including Cardal, Invenergy Transmission has successfully developed over 6,475 kilometres of transmission and distribution lines globally.