10 January 2018
Clifford Chance represents Lenders in financing of the biggest PV plant in Latin America
Clifford Chance's cross-border project finance team represented Bancomext, ING and KfW in connection with an approximately US$209 million financing for the development of a 300MW photovoltaic project in Mexico, San Luis Potosí. The solar project was awarded to Fotowatio Renewable Ventures (FRV) during the second power auction held by CENACE.
Construction of the solar plant is expected to begin during the second quarter of 2018. Once built, the project will be largest power plant of its kind in Latin America and will support the Mexican government's efforts to achieve its ambitious targets of clean energy generation. The project is anticipated to generate enough green electricity to supply approximately 76,100 homes, while reducing greenhouse gas emissions by approximately 97.7 million tons of CO2.
"Mexico's Energy Reform program continues to generate strong market interest," said Fabricio Longhin, a partner in Clifford Chance's Energy and Infrastructure group. "We are honored to have been involved right from the start and look forward to working with domestic and international stakeholders as projects make their way through the auction process."
Led by Longhin, the Firm's transaction team included associates Alberto Haito, Alan Sakar and Luis Antonio La Rosa, all based in the DC office. Attorneys from the Firm's New York, Madrid and Amsterdam offices also worked on this project.
Clifford Chance has been recognized for decades as a preeminent law firm in Latin America, renowned for successful, novel financing structures and its signature ability to drive innovation across the entire region. The Firm's dedicated Energy & Infrastructure team is comprised of bilingual and culturally fluent lawyers who understand Latin America's distinct business, legal and regulatory landscapes, as well as the evolving needs of a diverse client base. The group works seamlessly across practices on matters involving project development and the delivery of cutting-edge finance and capital markets structures. Uniquely, the team is adept at developing sophisticated, multisource financings, both through project-finance and bond structures and securitization schemes that involve a combination of commercial banks, multilateral lending agencies and the bond markets. The Firm is currently working on groundbreaking financings in Paraguay and Argentina, and continues to lead the way in Mexico, Colombia, Uruguay, Central America and Peru.
The Firm has been involved in the Mexican Energy Reform since its conception. The Firm has a solid, first-hand understanding of the secondary regulations and bankability issues arising under the new PPA. For more information with respect to the main features of the PPAs used for the first three auctions and the new clearing-house, view our client briefings issued following the first, second and third power auctions.