IDB Invest has provided a $67 million financial package for Tealov SRL (Tealov), a Uruguayan special purpose company (SPV) sponsored by Invenergy Renewables Global LLC (Invenergy), to develop the Cardal transmission project in Uruguay.

This project consists of the design and construction of a 500 kV substation in Cardal, which will section the existing Palmar-Montevideo Transmission Line; a 55-km 500 kV transmission line connecting the new substation in Cardal to Punta del Tigre; a 20 km 150 kV transmission line connecting Salto Grande to Salto B substation; and provision of ancillary works for existing substations.

The financing package includes a 11.5 million dollar loan and a 55.5 million dollar B-bond (bridge-to-bond), acquired by Prudential Private Capital, the private equity business of Prudential Financial, Inc. The B-bond allows IDB Invest to involve institutional investors. The proceeds provide resources to support the long-term reliability of the national electricity system in Uruguay and enable increased production of renewable energy by expanding the electricity grid necessary to deliver energy to demand centers.

The project has obtained a Baa2 rating assigned by Moody’s Investors Service, in line with Uruguay’s sovereign rating. The Baa2 rating recognizes that construction risk is partially mitigated and reflects that the expected payment of financial instruments is ultimately based on fixed payments from the UTE with Tealov.