Clifford Chance advises syndicate of lenders on financing for Dominican Republic power plant

Global Law firm Clifford Chance has advised the syndicate of lenders on a US$500 million project financing for the construction, operation and maintenance of a 414 MW combined-cycle gas fired power plant in Montecristi, Dominican Republic. The project is being developed by Energía 2000.

The syndicate of lenders consisted of CIFI Services, S.A., as syndication agent, Banco de Reservas de la República Dominicana – Banco Múltiple and Banco Múltiple BHD, S.A., as mandated lead arrangers, and CIFI LATAM, S.A., Banco Internacional de Costa Rica, S.A., Banco Aliado S.A., Banco Industrial, S.A., Bi Bank, S.A., Banco Multiple Santa Cruz, S.A., Metrobank S.A., Banesco Banco Multiple, S.A., Banesco (Panama) S.A., as senior lenders.

The transaction will support the construction of a natural gas generation turbine, a floating storage and regasification unit (FSRU), and a 7.2km natural gas pipeline. With a net capacity of 414MW, the plant represents the largest single expansion of generation capacity in the Caribbean in more than a decade and is one of the largest private infrastructure investments in the Dominican Republic. Once completed, it is expected to supply approximately 15% of the country’s energy capacity.

The deal team was led by Alberto Haito, supported by Fernando Liu and Genevieve McCarthy. The wider team included:

• Texas law: Partners Jonathan Castelan and Om Pandya, and associates Julian Pozza and Johnathan Walker
• English law: Senior associate Keith Hauck and lawyer Doyin Kazeem
• Tax matters: Partner Avrohom Gelber

Clifford Chance also advised Bladex on the US$116 million standby letters of credit facility relating to the development of the Manzanillo power project. The firm has previously advised CIFI on a credit facility for the refinancing of a 345kV, 128-kilometer transmission line across multiple provinces supporting the same project.