IDB Invest reaffirms its commitment to Chile’s energy sector with a record mobilization of private investment

IDB Invest has structured a financial facility that will allow the purchase of more than 99% of the payment documents issued by the Tariff Stabilization Fund (FET), in accordance with the new Law No. 21,667 on the Transitional Mechanism for Customer Protection (MPC) of Chile, to 26 power generation companies in Chile, for an approximate value of 2.4 billion dollars.

The operation seeks to provide a solution to the debt accumulation by power generation companies and address the problem of their immediate liquidity and long-term financial sustainability, mainly benefiting consumers identified as vulnerable by guaranteeing a controlled transition to market prices for electricity services.

The financing scheme is comprised of: i) Facility A of up to 240 million dollars financed with IDB Invest’s own capital, and ii) Facility B of up to 2.16 billion dollars financed through private placements of debt securities under Regulation 144A Reg S in the international capital markets.