Tealov S.R.L., a subsidiary of Invenergy, a leading privately-held global developer and operator of sustainable energy solutions, announced the completion of construction financing for the Cardal Transmission Project in Salto, Uruguay.

In partnership with IDB Invest, a member of the Inter-American Development Bank Group, Invenergy has pioneered a $67 million A/B Bond Loan that features a two-tranche finance structure. The first is an $11.5 million direct loan from IDB Invest. The second is an indirect IDB Invest loan that totals $55.5 million and is funded through a Project Bond Issuance in the US Private Placement Market.

Prudential Private Capital was the sole investor for the bond issuance associated with the transaction. This investment marks Prudential Private Capital’s first A/B bond transaction and the firm’s first time investing in an Invenergy project outside the US. The bond issuance was rated Baa2 by Moody’s, achieving the highest rating allotted by the sovereign ceiling.

“We’re honoured to continue to play an important role in the energy transformation in Uruguay. Invenergy’s ability to bring together strong, innovative financing partners like IDB Invest, who was instrumental in mobilising this financing agreement, is key in achieving these project milestones,” said Rolanda Shine, Vice President, Project Finance at Invenergy.

The Cardal Transmission project will consist of 55 kilometres of new 500 kV high-voltage transmission line, 20 kilometres of new 150 kV transmission line, a new 500 kV substation, and accompanying infrastructure. The line will connect to the Punta del Tigre substation and a 150 kV high-voltage line in Salto, Uruguay. Invenergy issued a notice to proceed with construction of the Cardal Transmission project in July of this year and is targeting commercial operation by early 2023.

“We will leverage our expertise in high voltage transmission development and construction to lead the Cardal Transmission project to completion,” said Shashank Sane, Executive Vice President, Transmission at Invenergy. “We are proud to be expanding our investment in Uruguay while growing the global Invenergy Transmission portfolio.”

Once online, the project will be operated by the Uruguayan government-owned power company UTE under a 30-year lease agreement. Including Cardal, Invenergy Transmission has successfully developed over 6,475 kilometres of transmission and distribution lines globally.

Source: https://invenergy.com/
Image source: Courtesy of Invenergy

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