White & Case advises Grupo Enhol on the project financing of the largest solar project in Peru to date

Global law firm White & Case LLP has advised Grupo Enhol, a Spanish renewable energy company with a presence in Peru for more than 17 years, on the closing of its limited recourse financing for the Illa project, a solar project with an installed capacity of 1.2 TWh and a related transmission line in Arequipa, Peru.

The project is the largest solar project in Peru to date and one of the largest solar projects in Latin America, and is expected to account for approximately 2.5 percent of Peru’s energy generation.

The White & Case team worked on a number of aspects of this landmark transaction, including negotiating the long-term senior debt financing provided by Banco Santander, S.A. as well as a sponsor financing consisting of a net asset value (NAV) financing and a letter of credit facility provided by the Santander Group. The senior financing comprised a term loan facility, a debt service reserve loan facility, a VAT loan facility and a letter of credit facility to satisfy performance security requirements under the power purchase agreement and the interconnection agreement. The proceeds of the senior financing will be used to develop, construct and operate the Illa project.

The project commenced construction in the third quarter of 2024 and is expected to be interconnected to Peru’s interconnected electric system, Sistema Eléctrico Interconectado Nacional, by December of 2026. The project will sell the energy it generates pursuant to a long-term power purchase agreement with Kallpa, a leading company that produces approximately 23 percent of the electricity consumed in Peru, as Offtaker.

The White & Case team was led by Project Development and Finance partner Carlos Viana (Miami), and included Debt Finance counsel Julio Peralta and associate Guillermo Manzanares (both in Madrid); and Project Development and Finance associates Helena Buitrago (New York) and Joselyn Gonzalez-Castillo (Miami).

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