DEAL: Argentina resumes power project finance funding

Author: Amélie Labbé | Published: 18 Jul 2017

GE’s energy investing unit and YPF Energía Eléctrica have secured international funding for two power projects in Argentina, one of the first times in 20 years that project finance has been used to fund the development of local infrastructure.

The $219.5 million five-year loan, provided by Credit Suisse, Citigroup and Export Development Canada, will be put towards the completion and operation of two of the largest projects awarded in 2016 under a tender issued by the Secretary of Electric Energy. These are two thermal power plants with a combined capacity of 374MW in the western provinces of Tucumán and Neuquén respectively.

Argentinian president Mauricio Macri announced last year that he was ending the long-term practice of subsidised electricity, which had resulted in financial difficulties for the country’s utilities. This formed part of a wider initiative to promote the use renewable energy under the RenovAr programme. Of the 60...