Bank of China contributes to $785.83 million syndicated loan for 656MW Gatún Natural Gas-Fired Power Plant Construction Project (Linked to Record ID#92639)

Bank of China and ICBC contributions to USD 785.83 million syndicated loan for 656MW Gatún Natural Gas-Fired Power Plant Construction Project On November 29, 2021, Group Energy Gas Panama (Grupo Energético Gas Panamá) — a special purpose vehicle that is jointly owned by InterEnergy (51% equity stake), AES Corporation (24%), and the Government of Panama (25%) — signed a $785.83 million syndicated loan agreement with a group of banks for the 656MW Gatún Natural Gas-Fired Power Plant Construction Project.

The banks that participated in the syndicated loan included SMBC (coordinated lead arranger), Natixis (coordinated lead arranger), Bank of China (as captured via Record ID#92638), Industrial and Commercial Bank of China Limited (ICBC) (as captured via Record ID#92639), Intesa Sanpaolo, Banco Sabadell, the Bank of Nova Scotia (Scotiabank), Société Générale, Banco Aliado, Banco Nacional de Panamá, Caja de Ahorros and Mega ICBC Bank.

The loan carries a 7-year maturity. Its other borrowing terms are unknown.

However, it is known that the borrower is expected to use the loan proceeds for the development, design, engineering, procurement, construction, commissioning, testing, start-up, operation, and maintenance of a 656MW megawatt Gatún combined-cycle natural gas-fired power plant (CCGT) — as well as an LNG jetty with a floating storage regasification unit — on the island of Telfers within the Panamanian province of Colon.

The facility (concessionaire) will sell the majority of its output to three local distribution companies — Empresa de Distribución Eléctrica Metro-Oeste, Empresa de Distribución Eléctrica Chiriquí and Elektra Noreste — under three, dollar-denominated, 20-year power purchase agreements (PPAs).

The concessionaire also has an LNG supply contract with Total. The first loan disbursement took place on December 10, 2021. Then, on March 22, 2022, the project’s groundbreaking ceremony took place. The project is expected to reach completion in the first half of 2024. The power plant commenced operations in October 2024.