Clifford Chance

Clifford Chance advises on US$530 million project bond by Mexico's Valia Energía

Global law firm Clifford Chance has advised BNP Paribas Securities Corp; Citigroup Global Markets Inc.; J.P. Morgan Securities LLC; Morgan Stanley & Co. LLC and SG Americas Securities, LLC, as initial purchasers, in connection with the offering by Buffalo Energy Mexico Holdings, S.A. de C.V., Buffalo Energy Infrastructure, S.A. de C.V. and Buffalo Energy, S.A. de C.V., as co-issuers, of US$530 million aggregate principal amount of 7.875% senior secured notes due 2039.

Valia Energía is the largest private energy generation platform in Mexico in terms of capacity, with a total commercial capacity of 3.2 GW. This transaction was the first project bond issuance in Mexico since 2020 and the first notes issuance by a Mexican first-time issuer in the international capital markets since July 2021.

"We are very pleased to have advised the banks on this innovative project bond transaction, an important milestone for Valia Energía and Mexico's energy sector," said partner Hugo Triaca, who led the Clifford Chance capital markets team. 

The firm also advised BNP Paribas; Citibank, N.A.; JPMorgan Chase Bank, N.A.; Morgan Stanley Bank, N.A. and Societé Générale, as lenders and issuers, in connection with a Working Capital Facility and DSRA LC Facility in an aggregate principal amount of US$280 million, to certain entities of Valia Energía, as borrowers.

The Clifford Chance team advising on the deal included:

• Capital Markets: partner Hugo Triaca, associates Alan Sakar Azuara and Joyce Moore and law clerk Jorge Vázquez Navarro
• Banking & Finance: partner Evan Cohen, counsel Patricio Abal, special legal consultant Pedro Buchanan and associates Andrew Cotton and Doug Mulliken
• Tax: Partner Avrohom Gelber and associate Wei Bin Tan

Clifford Chance advises on many transactions in the Latin American market, most recently on the US$1.5 billion bond issuance by the Republic of Costa Rica and a multi-jurisdictional secured financing to Grupo Unicomer.