Chadbourne & Parke LLP represented the sponsors, GDF SUEZ, the French utility company, and Japanese conglomerate Mitsui & Co. Ltd., on the successful $990 million project financing raised by Japanese Bank of International Cooperation (JBIC) and a group of commercial banks composed of the Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Corporate Bank and Sumitomo Mitsui Banking Corporation.
The deal reached financial close on December 18, 2012.
The JBIC loan will fund the expansion of GDF SUEZ’s renewable projects in Canada, enabling a further 218 MW from wind and solar power to come online by 2014.
The project financing is part of a wider transaction involving the sale of a 60 % stake in GDF SUEZ’s 680 MW renewable generation portfolio in Canada, in a deal worth more than $2.03 billion. Mitsui & Co. and a consortium led by Canadian private-equity firm Fiera Axium Infrastructure Inc. have each acquired a 30% stake. GDF SUEZ will retain a 40% interest and operational control of the ten wind farms and two solar photovoltaic power plants in Canada.
The renewable power projects include operational wind farms with a capacity of 363MW and a further 317 MW of wind and solar capacity are expected to start operating between 2013 and 2014. Once completed, the parks will generate 680 MW of power in British Columbia, Ontario, New Brunswick and Prince Edward Island.
The Chadbourne team was led by London partner Agnieszka Klich, supported by associates Tina Blázquez-López, Julie Scotto and William Nicholson.
“We are delighted to have advised GDF SUEZ and Mitsui on this successful transaction, enabling additional wind and solar power plants to be developed in Canada,” said Ms. Klich. “Through the joint venture, GDFS has also been able to pursue its asset optimization programme, releasing value from its Canadian assets and pursuing new renewable projects in Canada.”
