Best Power Financing
Bond investors proved better placed to pick up construction risk for a Mexican power plant than bank lenders, opening the way for more infrastructure debt sales
México Generadora de Energía
México Generadora de Energía’s
(MGE) sale of a 30-year project bond in November 2012
incorporated construction risk into a debt issue — a
rare feat and one that contributes to the
The $575 million deal finances two 250 megawatt gas-fired
power plants in Sonora, Mexico, and related infrastructure. The
plants were 88% and 51% complete, with around 15 months of
construction still to go, when the bond was sold.
Its greenfield risk, as well as the bond’s
smooth execution, put the transaction ahead of others under
consideration for the category. These...
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