Guerrero Olivos advised IDB Invest on structuring a financial facility that enabled the purchase of more than 99% of the payment documents issued by the Tariff Stabilization Fund (Fondo de Estabilización de Tarifas in Spanish), in accordance with Chile's new MPC Law (Law No. 21,667).
Through purchase facilities provided to 26 power generation companies in Chile, IDB Invest committed to purchasing the payment documents issued to each of them for up to US$2.4 billion. The operation represents the largest mobilization of private resources in the history of IDB Invest.
The structure of this facility is divided into a Facility A of up to US$240 million funded with IDB Invest's own capital, and a Facility B of up to US$2.16 billion financed through private debt offerings under the 144A Reg S regulation in the international capital markets.
The transaction will put an end to the accumulation of debt by power generation companies and address the issue of their immediate liquidity and long-term financial sustainability.
It is the largest mobilization of private resources in the history of IDB Invest and one of the most important capital market issuances in Latin America.