Peruvian HEP project attracts $585m financing so far

Inkia Energy has attracted 11 lenders to the $585m financing for its 510 MW Cerro del Aguila hydro project.

BBVA, BCP, Credit Agricole, HSBC, Scotia Capital, Societe Generale, Sumitomo Mitsui Banking Corporate and WestLB have committed to the 12-year club loan. Cofide, along with FMO and DEG, are also participating in the debt.

According to Project Finance, the impact of the Eurozone crisis on banks’ funding costs is thought to be primarily responsible for the increase. The project must reach financial close by May in order to meet its various contractual requirements. Construction will begin after financial close and be completed in 2015.

Inkia subsidiary Kallpa Generacion, which is developing the $900m plant, has signed a 15 year power purchase agreement for 200 MW of Cerro del Aguila’s output with Electro Peru and a 10-year PPA for another 200MW with a private utility.

A consortium of Astaldi and Grana y Montero holds the plant’s $680m engineering, procurement and construction contract.

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