Latin America: X-Elio advances financing for three Mexican solar projects

10 April 2018 - 12:00 am UTC

KKR-controlled developer X-Elio is nearing a financial agreement to fund the construction of a 246MWp solar power portfolio in Mexico.

Multilateral institution IDB Invest disclosed that it has approved a USD 10m senior loan for the Guanajuato Solar PV project. In addition, the IDB will contribute USD 10.4m in financing to the Guanajuato project.

Two sources familiar told Inframation that the financing package has yet to be signed, pending final due diligence and documentation by other lenders.

Inframation understands that IDB Invest and IDB are contributing to loans ranging between USD 37m and USD 45m for three SPVs controlled by X-Elio, which owns the 70.35MWp Guanajuato Solar PV project (USD 68.2m), the 81.4MWp Xoxocotla Solar PV project (USD 65m), and the 93.71MWp Conejos – Terranova Solar (USD 70m).

The combined capex for the projects is about USD 203m.

IDB Invest and the IDB will contribute to a 20-year tranche, expected draw participation from the China Co-Financing Fund for Latin America and the Caribbean (China Fund), the Canadian Climate Fund for the Private Sector in the Americas (C2F) and the Instituto de Crédito Oficial (ICO).

MUFG is understood to be working on the 16-year tranche.

X-Elio will back the transaction with 15-year Power-Purchase-Agreements (PPA) and 20-year clean energy certificates (CEL) signed with the Mexico federal electricity commission (CFE) to deliver energy and make capacity available, resulting from Mexico’s second renewable energy tender in September.

KKR Infrastructure owns 80% of X-Elio.

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