Estrella & Tupete Advises Energía 2000 on US$500 Million Syndicated Loan for the Manzanillo Power Land Project
Estrella & Tupete advised Energía 2000, S.A. (E2K, as borrower) on a US$500,000,000 senior syndicated loan for the construction, commissioning and operation of the Manzanillo Power Land power plant, an LNG-to-power combined-cycle energy project. The Firm's work encompassed the negotiation of the onshore security package and direct agreements on behalf of the borrower and its shareholders, the negotiation of the accounts management agreement, involvement throughout the entire regulatory and permitting process (from obtaining the definitive concession, the environmental license, and the natural gas licenses through to the interconnection point and commercial start-up authorizations), and the coordination of corporate matters and beneficial ownership due diligence for the project's shareholders.
Manzanillo Power Land is a combined-cycle natural gas power plant with a nominal capacity of 432 MW (414 MW net), located in Manzanillo, Montecristi, and connected to the National Interconnected Electric System (SENI), where it is already in simple-cycle commercial operation. The project includes a floating storage and regasification unit (FSRU) with its own maritime terminal, a natural gas pipeline and a transmission substation that steps up the generated power to 345 kV for grid transmission. Once fully operational in combined-cycle mode, it will provide firm natural-gas-fired generation capacity at a time of an energy generation deficit, all whilst displacing generation from oil derivatives. It is one of the largest expansions of power generation capacity in the Dominican Republic in more than a decade, and among the country's largest private infrastructure investments. Through its own FSRU and dedicated pipeline, the project also introduces new natural gas import capacity into a market historically served by a single supplier.
The financing brought together a syndicate of twelve lenders from the Dominican Republic, Panama, Costa Rica and Guatemala under a single credit agreement governed by the laws of the State of New York: CIFI Services as Syndication Agent, Banreservas and BHD as Mandated Lead Arrangers, Banreservas as Administrative Agent, Banco Popular Dominicano as Onshore Collateral Agent, and CIFI Latam, BICSA, Banco Aliado, Banco Industrial, BI Bank, Banco Múltiple Santa Cruz, Metrobank, Banesco Banco Múltiple and Banesco (Panamá) as senior lenders. Structured entirely with regional commercial banks and without a sovereign guarantee, the transaction ranks among the largest project finance transactions in the Dominican power sector.
About Estrella & Tupete
Estrella & Tupete, is an internationally recognized Dominican law firm with more than two decades in the market and offices in Santo Domingo, Santiago and Punta Cana, advising local and international clients on a broad range of matters, including corporate, finance, energy, real estate, tax and infrastructure. The Estrella & Tupete team on this transaction was led by Guillermo Estrella Ramia (Managing Partner), with the participation of Yamel Llenas Lajud (Senior Associate), Elianne Peña García (Senior Associate) and Manuel Rodríguez Acosta (Associate).