Cartagena: financing of largest independent power project in Spain closes

The ?665m debt financing of a 1200MW gas-fired power station in the Murcia region of Spain closed this week. Uría & Menéndez advised The AES Corporation (AES) in a Euro 665 million financing for the construction and operation by its Spanish subsidiary, AES Energía Cartagena, S.R.L., of a 1200 MW gas-fired combined-cycle power station in Cartagena, Spain. Financial close was reached in August this year.

The combined cycle power station in Cartagena represents the largest independent power project developed in Spain and one of the largest projects developed in Europe. A syndicate of banks, led by Société Générale, Crédit Agricole Indosuez and ABN AMRO Bank N.V. and, joined by, among others, BBVA and ICO, financed the power station on a non-recourse basis. There is an energy agreement with GDF International.

Uría & Menéndez partners, Carlos de Cárdenas and Juan I. González, said: ?After five years of intense work, we are extremely satisfied to have successfully closed the AES project financing. For Uría & Menéndez, it is a source of pride to have acted for AES in the largest independent power project developed in Spain. This transaction will help to satisfy the growing demand for electric energy in Spain, and will serve as a model for future project financings. For our firm, participation in this transaction means strengthening our leadership position in energy project financings, as Uría & Menéndez has advised the project companies in the two combined-cycle power stations that have reached financial close on a non-recourse basis.?

On behalf of Uría & Menéndez, the team consisted of the following individuals: Juan I. González (partner, Madrid, Corporate), advising on tolling and regulatory issues, Carlos de Cárdenas (partner, Madrid, Corporate) and Gonzalo Martín de Nicolás (senior associate, Madrid, Corporate), advising on financing issues, Jorge Martí (partner, Valencia, Corporate) supported by Elizabeth Torrecillas (senior associate, Valencia, Corporate) and Javier Martínez Nadal (associate, Valencia, Corporate), resolving corporate issues, construction matters, consents and permits, and Rafael Fuster (partner, Madrid, Tax) and Guillermo Canalejo (senior associate, Madrid, Tax) advising on tax questions. GDF International was advised by the Paris office of Freshfields Bruckhaus Deringer through Graham Coop, Thomas Hechl, Caroline Presber and Iñaki Gabilondo

Norton Rose (London) acted as counsel to AES with respect to English law issues. Allen & Overy (London and Madrid) acted as counsel to the syndicate of banks with respect to both, English and Spanish law. The Norton Rose team was led by Simon Currie supported by partners Richard Hill, Bruce Somer and Mauro Mattiuzzo and assistants Eva Constantinidis, Angela Croker, Arjan de Boode (Amsterdam), Anna Iversen, Ed Sunderland, Steven Towell and Jonathan Brufal.

The Allen & Overy team was lead by Alan Rae Smith who was supported by assistants Hugh Kettle, Steven Blanch, Jonny Cheatle, Dean Naumowicz, David Wakeling and Sophie Morrison in London, and partners Eduardo Sebastián de Erice, Carlos Albiñana, consultant Antonio Jiménez-Blanco, and associates Mariano López, Pedro Callol, Daniel Carnero, Beatriz del Rey, Jimena Urretavizcaya, and Amelia Fontán in Madrid and partner Werner Runge and associate Jules de Kom in Amsterdam.