Milbank advised MPG on the development and financing of La Bufa Wind Project in Mexico. The project is expected to be complete in early 2017.
Adding to its list of major alternative energy deals in Latin America, Milbank, Tweed, Hadley & McCloy LLP has represented Mexico Power Group (MPG) in two transactions related to the construction of a 130-MW La Bufa Wind Power Project in north-central Mexico.
Upon completion, the power generated from La Bufa will be sold to Volkswagen de México to help the company boost the use of renewable energy at its factory in Puebla, a largest auto plant in Mexico.
Milbank concurrently represented MPG in structuring its partnership with prominent energy private equity investor First Reserve, which has acquired an ownership stake in La Bufa Wind. MPG will build the facility in concert with Cannon Power Group and Gamesa, which is providing the wind turbines.
Debt financing for the project is being provided by Sumitomo Mitsui Banking Corporation, The Korea Development Bank, Nacional Financiera and Bancomext. Initial funding closed on December 4.
Milbank’s deal team was led by global project finance partner Allan Marks, who has worked on large renewable energy financings in the U.S. and Latin America, including: phases 1 and 2 of the Tres Mesas wind power project in Mexico which closed earlier this year, the 115 MW El Arrayán project in Chile, that country’s largest wind farm, and numerous solar power projects.
“Despite its substantial oil reserves, Mexico has shown a serious commitment to developing renewable energy projects and the country offers significant opportunities for wind energy, as represented by La Bufa in the state of Zacatecas,” said Marks. “This is a prime example of our project finance, renewables, M&A and Latin America expertise coming together to complete two complementary transactions in quick succession.”
Milbank, Tweed, Hadley & McCloy
www.milbank.com
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