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White & Case Advises on Private Placement for Solar Projects in Chile

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Global law firm White & Case LLP has advised Atlas Renewable Energy, as sponsor in connection with its US$253 million issuance of notes in the form of a private placement under Section 4(a)(2) and Regulation D of the Securities Act of 1933. The innovative transaction is the largest solar PV green private placement in Latin America to date. DNB Markets acted as sole lead placement agent.

The proceeds of the notes are expected to be used to (i) develop and construct a 244 Mega Watt Peak (MWp) solar project and (ii) refinance an existing 70 MWp solar project, both of which are located in Chile. Both projects will sell power under bilateral power purchase agreements with private offtakers in Chile, a growing trend across a number of jurisdictions in Latin America. The financing structure includes a number of unique features (including cross-collateralization of assets and revenues) that seek to optimize the value of the collateral and provide flexibility to the sponsor during construction of the larger of the two projects.

The White & Case team that advised on the transaction was led by partner Thomas Pate in New York and associates Gretel Martinez and Chris Bergan in Miami. Partner Bibiana Jaimes and  counsel Martin Olsson also played key roles in the transaction.

Chile environmental court rules against SQM mining corporation

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On Thursday Chile’s Environmental Court ruled in favor of indigenous complaints that had been brought against SQM. SQM is the world’s second-largest miner of lithium. They had planned for expansion but the expansion plans caused questions about Chile’s northern desert’s ability to handle the level of production.

The court put emphasis on how frail the environment in the northern dessert was right now as well as the lack of scientific study that SQM has done to prove that their mining would not affect the area’s water supply. They cite the ruling as a precaution that could change if they found evidence that the environment could be saved.

This is a big win for the indigenous people of the region whose water supply is threatened by the evergrowing expansion of lithium mining.