Nueva York.- Interchile S.A, una empresa de transmisión chilena propiedad 100% directa e indirecta de Interconexión Eléctrica S.A., ISA, que posee y opera un portafolio de activos de transmisión, que comprende más de 1.100 kilómetros de líneas de transmisión, saldrá a colocar bonos senior garantizados Reg S / 144 A por hasta US$1.3 mil millones.
La empresa inició operaciones en 2019 y sus activos propios son fundamentales para el objetivo de descarbonización de Chile, que facilitan el transporte de la energía renovable producida en el norte del país a las ciudades y centros de consumo más grandes.
La infraestructura en Chile, de la línea Cardones – Polpaico 2×500 kV y Encuentro – Lagunas 2×220 kV, alcanzó en 2020 cerca de 1.000 kilómetros de tendido doble circuito en la zona centro – norte del país y hoy contribiuye con el 18% del mercado de transporte de energía de alta tensión del país.
Moody’s Investors Service les asignó hoy una calificación de Baa1 por primera vez a la propuesta de pagarés de amortización senior garantizados que serán emitidos por Interchile S.A.
La perspectiva es estable, lo que refleja nuestra expectativa de operaciones sólidas y flujos de efectivo visibles y estables derivados de ingresos anuales fijos a largo plazo que proporcionarán un DSCR de 1.25x durante al menos los primeros 10 años de la transacción.
Además de refinanciar la deuda existente del proyecto de Interchile, que demandará inversiones por US$1.000 millones, los recursos levantados por los bonos irán a financiar ciertas cuentas de reserva, hacer una distribución al patrocinador del proyecto, pagar tarifas de transacción, gastos y propósitos generales de los proyectos.
FUNDAMENTO DE LAS CALIFICACIONES
La calificación Baa1 considera las características sólidas y la esencialidad de los activos del proyecto.
El perfil crediticio también toma en consideración la alta previsibilidad de los flujos de efectivo durante el período de tarifa fija del proyecto (20 años iniciales a partir de COD) con ingresos anuales fijos (Vatt), ajustados por inflación, que no están sujetos a riesgo de volumen. La calificación tiene en cuenta que después de los 20 años iniciales los ingresos del proyecto se reajustarán a una tarifa regulada o retorno sobre el valor de la inversión (VI).
El financiamiento está estructurado para proporcionar un colchón adicional en términos del índice de cobertura del servicio de la deuda (Dscr) del proyecto después del reinicio porque el Dscr aumenta en ese momento a más de 1,50x desde un promedio de 1,25x durante el período de tarifa fija. lo que significa que el VI y por lo tanto los ingresos del proyecto se pueden reducir -en promedio- en un 33% del caso base en un escenario de equilibrio.
La calificación Baa1 también considera el sólido marco institucional de Chile a pesar de los crecientes desafíos y demandas sociales en el país.
La experiencia y trayectoria del patrocinador del proyecto Interconexión Eléctrica S.A. E.S.P. (ISA, Baa2 estable) en activos de transmisión operativos en otros países de América Latina también es una consideración importante para la recomendación, particularmente considerando que el proyecto será auto-operado. ISA es un inversionista estratégico para el proyecto que también está expandiendo sus inversiones en otros activos de transmisión en la región.
La calificación Baa1 reconoce un alto apalancamiento inicial, con un Dscr promedio objetivo de 1.25x durante el período de tarifa fija, que aumenta a un promedio de 1.35x durante el período de reajuste y la estructura de deuda retrocarga.
El financiamiento contempla un período de interés de siete años solamente, con pagos de capital comenzando solo en el año ocho y creciendo a partir de entonces, pero más fuertemente después de que finaliza el período de tarifa fija de 20 años.
No obstante, no existe riesgo de refinanciamiento de los pagarés dado que la deuda se amortizará en su totalidad al final del período de financiamiento de 35 años.
Moody’s assigns First-Time Baa1 Rating to Interchile up to $1.3 billion senior secured notes; Outlook Stable
New York, July 13, 2021 — Moody’s Investors Service, today assigned a first-time Baa1 rating to the proposed up to $1.3 billion Reg S / 144 A Senior Secured Amortizing Notes to be issued by Interchile S.A.
The outlook on the rating is stable.
Proceeds from the will be used to refinance Interchile’s existing debt related to the construction of the project, fund certain reserve accounts, to make a distribution to the sponsor of the project, to pay for transaction fees, expenses and general purposes of the projects.
Moody’s has reviewed the preliminary draft legal documentation provided to date related to the debt issuance. The assigned rating assumes that there will be no material variation from the drafts reviewed and that all agreements will be legally valid, binding and enforceable.
RATINGS RATIONALE
The Baa1 rating considers the strong features and essentiality of the project assets that consist of key transmission lines in Chile that connect power generation in the north of the country with the consumption areas in Santiago. Project also comprises an additional line connecting Lagunas and Encuentro, 9 sub-stations and more than 2,100 towers and it is fully operational.
The credit profile also takes into consideration the high predictability of cash flows during the project’s fixed tariff period (20 initial years from COD) with fixed annual revenues (VATT), adjusted by inflation, that are not subject to volume risk. The rating factors in that after the 20 initial years revenues for the project will be reset at a regulated tariff or return on the investment value (VI).
Although this adds some uncertainty on long term revenues, we take comfort from the fact that the VI will be calculated by the regulator considering the cost of building a similar asset at that time with no risk of a change in technology because the calculation is based on the replacement value of the assets as if they were new but with the same physical and technical characteristics as the original, which mitigates the potential downside of the VI. In addition, the financing is structured to provide additional cushion in terms of the project’s debt service coverage ratio (Dscr) after the reset because the Dscr increases at that time to over to 1.50x from an average of 1.25x during the fixed tariff period, which means that the VI and therefore revenues from the project can be lowered -in average- by 33% from the base case in a break even scenario.
The Baa1 rating also considers Chile’s strong institutional framework despite increasing challenges and social demands in the country.
Regulation for transmission has been in place for more than 15 years, with some recent changes (Transmission Law -TxL- 2016) aimed at improving some inefficiencies and the payments allocation mechanisms, that didn’t result in material negative changes for the companies operating in the transmission industry and that were largely anticipated, broadly discussed and gradually implemented.
The expertise and track record of the project’s sponsor Interconexion Electrica S.A. E.S.P. (ISA, Baa2 stable) in operating transmission assets in other countries in Latin America is also an important consideration for the recommendation, particularly considering that the project will be self-operated. ISA is a strategic investor for the project that is also expanding its investments in other transmission assets in the region.
The Baa1 rating acknowledges a high initial leverage, with a target average Dscr at 1.25x during the fixed tariff period, that increases to an average of 1.35x during the reset period and back-loaded debt structure.
The financing contemplates a 7 years interest only period, with principal payments starting only in year 8 and growing thereafter but more strongly after the 20-year fixed tariff period ends.
Nevertheless, there is no refinancing risk for the notes given that debt will be fully amortized at the end of the financing period of 35 years.
The transaction will also include typical project finance features, including 6-month debt service reserve account, an interest reserve account, a one month O&M reserve account; restrictions to business activities, a security package that benefits senior creditors with first priority pledges over material assets, accounts and insurance, a distribution test subject to DSCR of 1.15x and limitations on additional indebtedness.
Rating Outlook
The outlook is stable, reflecting our expectation of sound operations and visible and stable cash flows derived from fixed, long term annual revenues that will provide a DSCR of 1.25x over at least the first 10 years of the transaction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Given the stable outlook and expected stability of revenues coupled with high initial debt levels and the back-loaded debt amortization profile, an upgrade of the ratings is unlikely in the near term.
Downgrade pressure on the ratings could emerge if the operating performance of the assets or its cash flow generation capacity, either from higher than expected expenses or an unexpected adverse change in the regulatory framework for transmission companies, are below expectations such that the DSCR is below 1.20x.
The principal methodology used in this rating was Generic Project Finance Methodology published in June 2021 and available at
https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1244806 .
Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
Profile
Interchile S.A, is a Chilean transmission company that owns and operates a portfolio of transmission assets, comprising more than 1,100 kilometers of transmission lines.
The company started operations in 2019 and its owned assets are critical for Chile’s decarbonization goal facilitating the transport of renewable energy produced in the north of the country to the largest cities and consumption centers. Interchile is 100% direct and indirectly owned by ISA.