Latin America: Consortium acquires majority stake in Enel Mexican renewable platform

28 September 2018 - 12:00 am UTC

Caisse de dépôt et placement du Québec (CDPQ) and the Mexican fund CKD Infraestructura México (CKD IM) closed on the acquisition of 80% of eight projects in Mexico owned by Enel for USD 1.4bn, according to a 28 September press release.

The portfolio of assets totals 1.8GW, split between 1.1GW of solar projects and 0.7 GW of wind assets. All of the projects have long-term PPA agreements, according to the press release.

The enterprise value of the assets was USD 2.6bn, comprised of USD 300m of equity value, USD 800m of project financings and USD 1.5bn of related party loans.

As a result of the transaction, CDPQ and CKD IM paid USD 1.4bn comprised of USD 200m for the majority interest in the SPVs and roughly USD 1.2bn for related-party loans granted to the related special purpose vehicles (SPVs). The 80% stake is in the eight SPVs which own the eight plants.

CKD IM will use the proceeds of the certificates Infrack 15 and Infrack 17 to pay for the transaction, according to a press release from CKD IM.

The deal was originally signed on 9 October 2017, as previously reported.

After the deal CDPQ will own a 40.8% stake in the projects and through a new holding company named Kino Holding. CKD IM will own a 39.2% stake in the same SPVs, through Mini HoldCos.

According to the press release Enel will continue to build the projects under construction, and will operate the plants under EPC contracts and long-term asset management agreements.

The portfolio includes three plants already in full operation with an installed capacity of 429MW, as well as three plants near the start of commercial operations with an installed capacity of 1.1GW. Two additional projects are under construction with a capacity of 300 MW.

The projects are:     

·         Villanueva I Solar (469MW)

·         Villanueva III Solar (359MW) 

·         Don José Solar (260MW) 

·         Amistad Wind (198MW) 

·         Dominica Wind (200MW)

·         Palo Alto Wind (129MW)

·         Salitrillos Wind (103 MW) 

·         Vientos del Altiplano Wind (100 MW).

According to the release Enel still holds in Mexico direct control of about 300 MW of installed capacity: Stipa Nayaa wind (74 MW), Zopiloapan wind (70 MW), Sureste wind (102 MW), El Gallo hydro (30 MW); Chilatan hydro (14 MW) and Trojes (9 MW) and COP 16 Solar (134 kW).

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