United States: Milbank Advises On $770M Financing Of ISA’s Investment In Chilean Power Sector
Last Updated: March 4 2016

NEW YORK, March 3, 2016 – Milbank, Tweed, Hadley & McCloy LLP advised six international lenders in connection with the $770 million financing for Interchile S.A. (Interchile), a wholly owned subsidiary of Interconexión Eléctrica S.A. E.S.P. (ISA). ISA is a Colombian state-owned holding company that operates in Latin America's power and telecom sectors. The financing for Interchile represents ISA's first foray into the Chilean power market.

The financing represents 70% of the over $1 billion cost of the Cardones-Polpaico transmission line project, which will be owned and operated by Interchile. Once completed, the Cardones-Polpaico 500 kV double circuit transmission lines will service the growing energy needs in the center and south of Chile and mining operations in the northern part of the country.

Milbank's latest Latin America utility infrastructure transaction was led by Dan Bartfeld, head of the firm's Global Project Finance group. The lender group was comprised of BBVA, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corp., Natixis, Crédit Agricole and Banco del Estado de Chile.

BBVA, Banco del Estado de Chile, and Chile's Banco BICE are also providing Interchile with a nearly $68 million value-added tax facility. The project is expected to be operational by the end of 2017.

Mr. Bartfeld said, "Milbank is pleased to have worked on a number of concession-based transmission line financings throughout Latin America, including this very large and high-profile transaction. Chile's electricity sector has been a model for the region in its embrace of private investment. Securing financing for the Cardones-Polpaico project is another step in assuring ample electric power for an expanding economy." In addition to Mr. Bartfeld, the Milbank deal team consisted of Project Finance associates Danielle Hunt, Kimia Solaimanishad, and Mark Greenfogel.

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