Metlen Energy & Metals is to sell a 588MW solar portfolio in Chile to a wholly owned subsidiary of Glenfarne Asset Company.
The transaction involves operational solar projects combined with co-located BESS facilities with storage capacity of 1610MWh.
Construction for the BESS facilities is ongoing and expected to be completed within a year.
The projects benefit from wide geographic diversification and multiple interconnection nodes across Chile’s Sistema Eléctrico Nacional (SEN), allowing for portfolio optimization.
The headline consideration of the acquisition is agreed at US$815Mio, including the assumption of debt, and based on certain financing assumptions and other adjustments.
The closing of the transaction is planned to occur when the BESS becomes operational, regulatory approvals are obtained and certain financing and other customary conditions for this type of transactions are fulfilled.
This landmark agreement forms part of Metlen’s global Asset Rotation Program for renewable energy projects.
Commenting on this sizeable transaction, the chief executive of Metlen, Evangelos Mytilineos, said: “This is a landmark transaction for Metlen, as we pave the growth of M Renewables.
“We have identified the potential of Chile’s renewables market in 2020 and have managed to successfully overcome market challenges.
“In doing so we have developed, structured – commercially and financially – and constructed these projects at the highest standard.
“This agreement reinforces our relationship with Glenfarne across the renewables market but also creates foundations for further enhancing the cooperation in other areas of common interest.
“Furthermore, it allows Metlen to release capital and crystallize value in a challenging market environment, providing confidence on the execution of the Asset Rotation Program.”
Brendan Duval, founder and chief executive of Glenfarne, added: “This transaction represents a significant step in Glenfarne’s commitment to further expanding our presence in Chile’s renewable energy sector and continued growth in our business relationships with Metlen.
“We’re glad to work with Metlen on this transaction, which aligns with our mission by investing in infrastructure that supports Chile’s energy transition.”