Harneys advised Polaris Infrastructure Inc. (TSX: PIF), a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, on a US$27 million loan financing with the Brookfield Infrastructure Debt Fund, a global credit-focused fund managed by Brookfield Asset Management Inc (NYSE: BAM).
The loan was made to a BVI incorporated 100 per cent owned non-operating subsidiary of Polaris that holds all of the equity of its operating run-of-river hydro projects in Peru, including the Canchayllo (5 MW), El Carmen (8 MW) and the 8 de Agosto (20 MW) projects. Harneys advised on the BVI aspects of the deal, including BVI security and a pre-closing corporate reorganisation. Harneys previously advised Polaris on its 2018 acquisition of 100 per cent of the issued and outstanding shares of Union Energy Group Corp.
The Harneys team was led by Partner George Weston, with support from Associates Ian Chambers and Odane Lennon. George Weston commented: “We are delighted to have assisted Polaris with the successful closing of this finance transaction, which illustrates our continued strength in cross-border corporate finance. We have seen an increase in the use of BVI vehicles in the renewable energy sector in the last few years, particularly in Central and Latin America, and recently established a dedicated sector group.”
Harneys acted on instructions from Canadian firms Borden Ladner Gervais LLP on the financing and Cassels Brock LLP on the reorganisation. Hernandez & Cía advised Polaris on the Peruvian aspects of the transaction.
Harneys has extensive experience in both the wider energy sector and specifically in the renewable energy sector, and has worked on a number of ESG initiatives where clients explore socially conscious and environmentally sustainable projects, using offshore companies. The firm’s global team of lawyers advise on a variety of renewable energy financing and acquisition projects, including joint ventures, M&A transactions and debt and equity capital raises.