SMBC Latin America Closes Landmark Renewables Transaction With $710 Million Bond Issuance, One of the Largest Private Placement in Region’s Recent History

SMBC and SMBC Nikko Securities America, Inc., members of SMBC Group, announced the completed execution of one the largest private placements in Latin America in recent history, refinancing Innergex’s Chilean platform, with several businesses playing integral roles in the deal’s success. The deal involved the close of Aela Generación S.A.’s $710MM green bond issuance, the proceeds of which were used to partially finance the Aela acquisition, refinance all existing debt in a portfolio of 609MW, and fund the installation of a battery energy storage system.

“The closing of this transaction demonstrates the well-coordinated effort among several deal teams that brought market-leading execution on large and complex transactions such as Innergex’s private placement,” said David Gonzalez, Managing Director and Head of Project & Structured Finance-Latin America. “We want to thank everyone involved for their hard work resulting in another successful transaction, further strengthening our team’s leadership in Project and Structured Finance in Latin America.”

SMBC Nikko Securities America, Inc. closed its first buy-side transaction in Latin America on June 9, acting as an exclusive buy-side advisor on a $686MM deal for Innergex Renewable Energy Inc. (Innergex). This completed Innergex’s acquisition of Aela, a wind portfolio with a capacity of 332 MW across three fully operating assets (Sarco, Cuel, and Aurora), in one of the most visible M&A transactions in the region. SMBC Group played multiple significant roles in these transactions, with SMBC Nikko Securities America, Inc. serving as the buy-side advisor for the Aela acquisition, and as sole lead placement agent and Rating Advisor for the U.S. Private Placement; SMBC Group also acted as exclusive financial advisor for the refinancing, Green Bond Coordinator, and sole issuing bank of reserve account letters of credits required under the bond.

“The strategic value that our deal and banking teams have provided to Innergex, playing multiple leadership roles, is a clear testament to the strong progress that we have made as an organization in our efforts to align seamlessly and holistically across various disciplines and entities to deliver efficient and value-added solutions to our core clients,” said Carl Adams, Deputy Head of the Americas Division.

About SMBC Group

SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 140 offices and 86,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG’s shares trade on the Tokyo, Nagoya, and New York (NYSE: SMFG) stock exchanges. As of March 31, 2022, its total assets were $2.11 trillion.