Project: Sol de Algarrobal

The Sol de Algarrobal PV Park is a photovoltaic project with an integrated battery storage system. It is located in the municipality of Vallenar in the Atacama region, about 550 km north of the Chilean capital Santiago.

The project benefits from its proximity to the existing Algarrobal 220kV substation, which is part of Chile’s main transmission grid and is located just 3.5 km away. This short distance significantly reduces the need for additional transmission infrastructure, minimizes environmental impact, lowers interconnection costs, and accelerates the project’s timeline for feeding clean energy into the grid. In addition, it improves the overall efficiency and reliability of supply to the Chilean national electricity system.

The Sol de Algarrobal project has already signed long-term lease agreements covering 100% of the required land and enjoys strong support from the local community, as the company has actively engaged with residents and the municipality from early stages. The local population will be involved both during construction and in operations, and will benefit in the long term from attractive employment opportunities in the region.

During the construction phase, about 400 jobs are expected to be created, while around 10 permanent positions will be available during operations and maintenance. Beyond direct employment, the project is expected to generate indirect economic opportunities for local businesses and service providers – such as transport, carpentry, catering, and many more.

The project is currently in the development phase, securing all necessary permits – in particular the environmental permit – as well as agreements with local stakeholders and communities. A significant share of the jobs will be filled with members of nearby communities, creating opportunities for people with different educational backgrounds.

The target is to achieve Ready-to-Build (RTB) status by the end of 2027, with all permits in place and the project fully prepared for construction. The project aims to reach this status in Q4 2027.

Project: Parque Eólico Viena

Parque Eólico Viena is a wind power project with an integrated battery energy storage system (BESS). It is located in the municipality of San Pablo in the Los Lagos region, about 950 km south of Santiago, the capital of Chile.

The project benefits from its proximity to the existing 66 kV La Misión substation, which is part of Chile’s transmission network and only 8 km away. This short distance reduces the need for additional transmission infrastructure, minimizes environmental impacts, lowers interconnection costs, and accelerates the project’s timeline for delivering clean energy to the grid. It also improves the overall efficiency and reliability of power supply to the national network.

The project is expected to create approximately 100 jobs during construction and about 5 permanent positions during operation and maintenance. In addition to direct employment, it will generate indirect economic opportunities for local businesses and service providers such as transportation, accommodation, catering, and many others.

The project site covers an area of about 1,590 hectares and is secured by a 30-year lease agreement with a private landowner.

The project is currently in the development phase, focusing on obtaining all necessary permits – particularly the environmental permit – as well as agreements with local stakeholders and communities.

The target is to reach Ready-to-Build (RTB) status by the end of 2027 or early 2028. By then, the project should be fully permitted and all preparations required for construction completed.

Part of the development budget will be financed through the crowdfunding campaign. The project structure is fully secured within the group, ESG standards have been confirmed by external review bodies (SPO), and AustriaEnergy has many years of experience with a 100% success rate in previous projects in Chile.

The Sol de Algarrobal Project

The Sol de Algarrobal project has identified six local communities within its area of influence, four of which are of indigenous origin. To date, five of the six communities have expressed their willingness to actively participate in the early engagement processes. This demonstrates a high level of trust in both the project development and the project owner. The remaining community continues to follow the process closely and is considering how it can best benefit from the project.

The communities are as follows – the first four are of indigenous origin:

• Comunidad Indígena Diaguita “Amancay Pai”

• Comunidad Indígena Diaguita “Chipasse Ta Caluba”

• Comunidad Indígena Diaguita “Llanos del Lagarto”

• Asociación Multicultural de Pequeños Agricultores y Crianceros “Amanecer del Desierto”

• Junta de Vecinos Canto del Agua

• Junta de Vecinos Llanos de Lagarto

The local communities rely primarily on small-scale farming and livestock, which form an essential basis of their livelihoods. The project works in close coordination with the affected groups to jointly design offsetting, mitigation, and support measures. These initiatives are intended to meet the actual needs of the population and contribute to the long-term social and economic development of the region.

Current initiatives under discussion include:

• Establishment of community nurseries to promote local reforestation and agricultural productivity

• Provision of solar kits for households without electricity supply – particularly for medically dependent individuals and community centers

• Improvement of infrastructure for social meeting points in the communities

• Supply of animal feed to support local livestock during critical periods

• Prioritization of local workers during the construction phase to create employment opportunities

• Construction of fencing for community-owned infrastructure and agricultural land

Additional measures are being defined in close collaboration with the affected communities.

The estimated costs of these initiatives amount to approximately USD 600,000 at the beginning of the construction phase, as well as around USD 50,000 annually during the operational phase. These amounts are not yet final. In addition, these initiatives will generate around 500 temporary and 15 permanent local jobs.

This proactive and participatory approach underlines the project’s strong commitment to social responsibility, respect for indigenous peoples, and AustriaEnergy’s holistic development philosophy – with the aim of developing locations rather than merely implementing projects. Furthermore, the project is consistently aligned with international best-practice standards.

The Parque Eólico Viena Project

The Parque Eólico Viena project is still in an early development stage. However, it is expected that comparable measures addressing the environment, community, flora, and fauna will be implemented – in line with other projects developed by AustriaEnergy.

Given the project’s characteristics and potential benefits – particularly in terms of job creation during construction and operations, the promotion of local economic development, knowledge transfer, and the stimulation of regional economic activity – a positive reception by the local communities is anticipated.

The project sponsor is convinced that a proactive, participatory approach highlights the project’s strong commitment to social responsibility, respect for indigenous peoples, and alignment with international best-practice standards.

By fostering trust, improving local living conditions, and creating tangible benefits for surrounding communities, the project contributes to reducing social tensions while strengthening social acceptance – a decisive factor that makes Parque Eólico Viena a sustainably attractive opportunity for responsible investors.

Both projects make significant contributions to CO₂ reduction (a total of over 219,000 tons per year) and to achieving Chile’s decarbonization goals. They are currently in the development phase and are expected to reach RTB (Ready-to-Build) status by the end of 2027.

AustriaEnergy International was certified in 2023 with a Second Party Opinion (SPO) by EthiFinance (formerly IMUG), confirming compliance with ESG standards. This SPO was ratified in 2024.

Already implemented ESG measures include:

• Environmental management in accordance with Chilean law and the standards of the International Development Bank (IDB) (Equator Principles)

• Promotion of the circular economy, e.g. through the recycling of PV modules

• Biodiversity protection by choosing sites in desert regions and implementing targeted measures to safeguard flora and fauna

• Compliance with international human and labor rights (ILO standards, the Chilean constitution, and labor legislation)

• Occupational health and safety during the construction phase through weekly safety briefings and mandatory inspections

• Product and operational safety in line with Article 184 of Chilean labor law

• Supplier and subcontractor compliance with ESG requirements through a binding Code of Conduct

• Transparent stakeholder dialogue as well as continuous development and standardization of the company-wide ESG management system

Once the project has obtained all the necessary permits to begin construction (Ready-to-Build, RTB), the exit strategy is to sell the project to an investor or energy company that wishes to take on construction, long-term ownership, and operation.

Typical buyers include utilities or independent power producers (IPPs) seeking to enter the Chilean market or expand their portfolios—without taking on the risks associated with project development. A sale at the RTB stage enables the site or project developer to realize the value created up to that point and transfer construction and operational responsibilities to experienced EPC companies and operators.

Potential buyers include:

• Independent Power Producers (IPPs)

• Utilities looking to expand their renewable energy capacity

• Infrastructure funds and institutional investors seeking long-term, stable cash flows from operating renewable energy assets

• Pension funds and insurance companies looking for sustainable, low-risk investment opportunities

AustriaEnergy has already successfully implemented this strategy for all its previous projects in Chile, and it is in line with common market practices in the renewable energy sector. A sale at RTB status enables repayment of the raised capital and reinvestment of profits into new sites and projects—supporting the active advancement of the energy transition.

The issuer has the right to early termination on July 31, 2028 and July 31, 2029. In such cases, a lump-sum prepayment penalty of 3.2% of the subordinated loan amount (if terminated on July 31, 2028) or 0.8% of the subordinated loan amount (if terminated on July 31, 2029) will apply, in addition to repayment of the subordinated loan principal and the regular interest due at the respective termination date.

AustriaEnergy International GmbH will act as the issuer and is responsible for the annual interest payments as well as the repayment of the provided capital.

The funds will be passed on under identical conditions via intra-group loans, first to AustriaEnergy Spain S.L. and subsequently to the special purpose vehicles (SPVs) AustriaEnergy Chile Nueve SpA and AustriaEnergy Chile Trece SpA.

These SPVs are wholly owned by AustriaEnergy Spain S.L., which in turn is fully owned by AustriaEnergy International GmbH, the issuer.

AustriaEnergy Chile SpA is responsible for the entire development process – from land acquisition to achieving construction readiness, and in some cases also construction (as part of so-called construction management on behalf of third parties), through to project operation.

It coordinates all activities with the aim of ensuring a reliable supply of renewable energy to Chilean consumers while guaranteeing a sustainably high energy yield.

AustriaEnergy Chile SpA has entered into a service agreement with the special purpose vehicles (SPVs).

The loan has a term of 5 years. Investors receive an annual interest rate of up to 8.00%, payable each year on July 31.

Investors who invest within the first 21 days after the start of the issuance will receive an additional one-time bonus payment of 5% of the subordinated loan amount. This bonus will be paid together with the first regular interest payment.

Repayment is made as a bullet payment, meaning the entire loan amount will be repaid at the end of the term on July 31, 2030.

This is a subordinated loan with qualified subordination. Interest is calculated annually in arrears on an actual/365-day basis.

The funding threshold is €200,000 and the funding cap is €1,200,000, with the first project tranche targeting €400,000.

The minimum investment starts at €100, and additional investments can be made in increments of €50. The maximum investment per investor is €25,000, or less if the remaining loan volume available is lower.