An Engie-led joint venture signed an approximately USD 450m loan to finance construction of a renewable energy portfolio in Mexico, said three sources briefed on the situation.
The credit facility, signed in the week of 27 May, carries a tenor that covers construction period plus 18 years.
BBVA, Crédit Agricole and Natixis led the financing, joined by local development bank Bancomext, French development bank Proparco and Danish export credit agency EKF.
The completion of the portfolio financing was a condition precedent to complete the equity partnership agreement between Engie and Tokyo Gas, Inframation reported.
Crédit Agricole served as sole global coordinator for the transaction, while Natixis was the administrative agent. The sponsors used in-house financial advisory.
Allen & Overy was the legal advisor for the lenders, while Shearman & Sterling served as legal advisor to the sponsors.
The portfolio comprises six renewable energy projects that won power purchase agreements (PPA) and clean energy certificates (CEL) in Mexico’s second and third clean energy auctions. The winners in the second tender were the 157MW Trompezón solar park (USD 124.4m), in the central state of Aguascalientes, and the 51MW Tres Mesas 3 wind farm (USD 99m) located in Güemez, in the northeastern state of Tamaulipas.
In the third clean power tender, Engie won contracts for the 96MW Tres Mesas 4 wind farm (USD 143m), to be developed near San Carlos in Tamaulipas, which committed to make 30.6MW per year available; the 99MW Abril 99 solar project (USD 92.4m) located near Hermosillo in the northern state of Sonora; the 217MW Calpulalpán solar project (USD 168m), near Tlaxcala in the state of Tlaxcala; and the 150MW Villa Ahumada solar park (USD 145m) in the state of Chihuahua.
Engie and Tokyo Gas did not return calls seeking comment.
The banks and advisors declined comment on the situation.