Enel Green Power signs debt package on Mexican solar farms

Enel Green Power signs debt package on Mexican solar farms

Project & Infrastructure Finance Loans Debt Energy Mexico

Italian utility Enel, through renewables subsidiary Enel Green Power, has signed an 18-year, $605m project finance package to fund the development of the Villanueva I and III solar plants and the Don Jose renewable energy initiative in Mexico.

The long-term debt comprised commitments from commercial lenders and development banks, according to two sources familiar with the funding package.

BBVA Bancomer, CaixaBank, MUFG and Natixis were credited as bookrunners, while IDB Invest, the European Investment Bank and Bancomext were named participants.

Each lender committed approximately $87m apiece, according to one of the two sources.

BBVA was named financial advisor and administration agent on the transaction while Shearman & Sterling was legal counsel.

The renewable power developer recently sold an 80% stake in its Mexican renewable power portfolio to Canadian Caisse de depot et Placement du Quebec (CDPQ) and CKD Infraestructura Mexico for $1.4bn.

Enel said it would continue to operate and manage the assets that were sold, which included the 469 MW Villanueva I, the 359 MW Villanueva III and the 260 MW Don Jose solar farms.

As previously reported by LatinFinance, Enel in November 2017 was looking for project debt to fund construction of the three facilities and sources had linked IDB Invest to the project financing.

Villanueva I and III are located in Coahuila while Don Jose is based in Guanajuato.

All three solar plants got 15-year power purchase agreements and 20-year clean energy certificates, or CELs, from Mexico's first long-term power auction in March 2016.

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