British-Mexican sponsors to raise debt for equity recap

29 July 2019 - 12:00 am UTC

Sponsors of a 216MWp solar portfolio in Mexico are seeking a credit facility for approximately USD 130m, said three sources briefed on the situation.

 

The sponsors, UK based investment manager InfraRed and Mexican financial services firm Invex, sent a request for proposals in early July, to learn about potential terms for the 15-year loan, associated with three solar projects with a combined capacity of 216MWp (160MWn), sources added.

 

The deal will be backed by a power purchase agreement (PPA) signed with electricity distributor and trader Ammper, which in turn will distribute the power to nine commercial and industrial customers. Sources did not identify the ultimate clients of Ammper.

 

The sponsors, InfraRed and Invex, built the projects with 100% in equity contribution, according to two of the sources. The sponsors will essentially recover its investment in solar plants as part of the capital raise.

 

The three projects are already operational and include the 36MWp Torreoncitos solar park in the municipality of Jiménez, the 36MWp Rancho el Trece solar park in the municipality of Camargo and the 144MWp Ahumadas Solar parks, all of them in the State of Chihuahua.

 

InfraRed, through its InfraRed Infrastructure Fund V, and Invex acquired the projects in July 2017 as greenfield assets.

 

In June, the sponsors launched a sale process for these assets, hiring BBVA as financial advisor for the sale, Inframation reported.

 

Mexican financial services company Invex owns 25% of shares on the three already operational solar projects, while UK-based investment manager InfraRed Capital Partners owns a 75%.

 

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