Cuatrecasas advises Davivienda on structuring the financing granted to Genser Power for the construction of a thermal power station
Cuatrecasas has advised Banco Davivienda on structuring a USD 29 million loan granted to the Genser Power Group to develop an energy generation project in Ecopetrol’s Bloque Caño Sur, in Puerto Gaitán, Meta (Colombia).
This finance structuring allowed Davivienda to close the transaction and enable Genser Power to proceed with the designing, construction, provision of equipment, installation, commissioning, testing, operation and maintenance of a thermal power station, with an installed generation capacity of 32 MW. The company focuses on energy generation solutions with different fuels and applications for various economic sectors.
According to Cuatrecasas Finance and Infrastructure partner Ana María Sánchez, "The financing for the Caño Sur thermal power station was quite a challenging transaction. Finance structuring under project finance schemes is always complex and requires the legal team to be fully committed as it involves working on many fronts simultaneously.”
The partner adds that “for this type of transaction, the Cuatrecasas team had to structure and produce a large number of complex legal documents used to orchestrate the project financing. In addition, we had to review and reply to numerous regulatory questions, considering the nature of the project and the sponsors. We are very proud of having contributed to this thermal power station becoming a reality.”