Rame Energy Plc will sell stakes in four Chilean wind developments to a unit of Banco Santander SA, providing $69 million of equity funding for the power projects.
Santander Investment Chile Ltda. will invest 80 percent to 90 percent of the equity capital for 118 megawatts of projects, while Plymouth, U.K.-based Rame has the right to repurchase the stakes when operations are scheduled to start at the end of next year, the British developer said today in a statement.
The deal, subject to due diligence and final contracts, is “an important milestone towards our goal of having in excess of 100 megawatts of power generating capacity in operation in Chile by the end of 2015,” Chief Executive Officer Tim Adams said.
It also allows Rame to monetize the value of the projects before they are built, allowing full ownership at completion.
Santander will be considered first for equity financing of future projects by Rame through the end of 2016 under the deal.
Rame listed on London’s Alternative Investment Market in April to raise funds for Chile projects. It formed a venture with Santander to fund its first two projects in the country.