Watson Farley & Williams (“WFW”) has advised KfW IPEX-Bank GmbH and Kreditanstalt für Wiederaufbau on the US$ 31.7m financing of the Kosten onshore wind farm project located in Escalante in Argentina’s Chubut province. The financing is covered by an ECA guarantee from Germany’s Euler Hermes and is one of the first non-recourse project financing transactions in Argentina after the last change of government.
The Kosten project, which reached financial close in May 2018, was purchased from a local developer and is owned by Spanish renewable energy company Grenergy Renovables S.A. After completion, it will have a total capacity of 24 MW and will consist of six wind turbine generators of 3.4 MW each and one wind turbine generator of 3.6 MW supplied by Senvion GmbH.
The cross-border WFW team that advised the banks was led by Hamburg Banking & Finance Partner Dr Stefan Kilgus, supported by Senior Associate Dr Pascal Unger and Associate Dr Matthias Abendroth. Also in Hamburg, Corporate/Energy Partner Stefan Hoffmann assisted with the project related aspects of the transaction. Spanish law advice was provided by Madrid Banking Partner Rodrigo Berasategui, supported by Associate Juan Vicente Barquilla. WFW worked closely throughout the transaction with local Argentine counsel Bruchou, Fernández Madero & Lombardi.
Dr Stefan Kilgus commented: “This is the second non-recourse financing under Argentina’s new RenovAr support regime we have advised on, and we are proud to have played such a pioneering role in the growing Argentine renewable energy market”.