Law firm Addleshaw Goddard has advised Fountain Hydro Power Corp. on the refinancing of the Bajo Frio hydropower plant in Panama. 

The transaction saw AG's team advise the project company, whose shareholders include Credicorp Group, Norfund and Agua Imara, on its prepayment and exit from its project finance arrangement with the existing lenders (FMO of the Netherlands, DNB of Norway, Proparco of France and DEG of Germany). These project finance loans were replaced with Panama-listed (LATINEX) bonds arranged by Banistmo and Banco General of Panama. 

The 58MW capacity project, which began generating power in 2015, is a run-of-river power plant on the Chiriquí Viejo river, close to the border with Costa Rica, featuring a 2km canal connecting its two power houses.

Previously, in 2020, AG advised SN Power and Norfund on the hive-out of the project from a transaction under which Norfund (as sole shareholder) sold hydropower developer SN Power (the then owner of Bajo Frio), to fellow Norwegian renewable developer, Scatec. 

AG's team advising on the transaction was led by partner Rory Connor, supported by Inga Aryanova, Carl Baker, William Morrison, Ryan Ogg and Katie Bush.  

Rory Connor said: "Bajo Frio is a fantastic project and we are pleased to have been able to assist our client once again on this strategically important transaction. Hydropower is the largest source of renewable power globally. As a highly effective way of producing clean, sustainable and low cost energy, as well as balancing the intermittency of other renewables, hydropower is essential to the energy transition and we are proud to work with many amazing clients in this sector."