This remarkable transaction to fund Celeo Redes Chile Transmisión, totaling more than 550km of transmission lines and eight substations, was the first of its kind in the country. A single asset manager private placement that included construction risk and a delayed-draw of the notes, the transaction was also notable for carrying a 30-year tenor.
The finance structure was innovative for both private placement investors and rating agencies. It required a project finance structure with usual covenants, EoDs and security package to maximize leverage while accommodating the brownfield asset and the two large construction projects.
This ground-breaking transaction is another milestone in the continued success of project Celeo.