Cutting edge: close-up: IMPSA's clever tactics secure CBK project sale

Author: | Published: 1 Jun 2005

On April 22 Argentine energy constructor IMPSA Group completed the sale of the Caliraya-Botocan-Kalayaan (CBK) power complex in Laguna, Philippines to a 50-50 joint venture between Electric Power Development of Japan (J-Power) and Sumitomo Corp, completing one of the most extraordinary series of projects and transactions in the power sector.

The closing was the second of a two-part sale, the first part of which closed on January 10 2005 with the sale by IMPSA Group to the joint venture of a 50% stake in the CBK project that IMPSA acquired from its partner, Edison Mission Energy, on the same day. On April 22, IMPSA sold the remaining 50% to J-Power/Sumitomo.

In a pioneering approach to the acquisition financing for the transaction, the joint venture obtained structurally subordinated loans from a syndicate led by Japan Bank for International Cooperation and including Mizuho Corporate Bank and ING Bank. Because the CBK project already carries project...