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Clifford Chance closes financing of two wind farms in Mexico

17 May 2017

Clifford Chance closes financing of two wind farms in Mexico

Clifford Chance US LLP advised Mexican development bank Banco Nacional de Obras y Servicios Públicos ("Banobras") and EKF Denmark's Export Credit Agency ("EKF") in the financing of two wind farms to be constructed by Energía Eólica del Sur in the municipalities of Juchitan and El Espinal in the state of Oaxaca in southern Mexico.

The two wind farms will have a joint capacity of 396 MW and are expected to become operational by late 2018. The project's sponsors are Mitsubishi Corporation, Mexico’s Fondo Nacional de Infraestructura and Balam Fund.

Banobras and EKF will provide debt financing for the project, while Mexican development bank Nacional Financiera ("NAFIN") will provide VAT financing. The Danish turbine manufacturer Vestas Wind Systems will provide wind turbines for the project.

The energy produced by the project will be purchased pursuant to long-term PPAs with Mexican industrial companies. When completed, the project will be among the largest wind farms in Latin America.

Partner Kate McCarthy led the main Clifford Chance team for the transaction along with senior associate Jessica Springsteen, assisted by associates Alan Sakar, Laura Marriott and Greg Jehle and also by partner Jennifer DeMarco and senior associate Hana Bae.

Banobras and EKF were represented in Mexico by a Galicia Abogados team consisting of Carlos de Maria y Campos, Eduardo García Travesi, María José Ortiz, Javier Arreola and Costanza García.