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Cubico secures $450m financing for 600MW Mexican renewable projects

CTBR Staff Writer Published 11 August 2017

Cubico Sustainable Investments has raised $450m in project financing for a 600MW renewable energy portfolio in Mexico from various financial organizations.

The portfolio comprises the 250MW wind farm El Mezquite in Nuevo Leon and a 350MWp solar PV project named Solem in Aguascalientes.

Cubico has allocated $220m for the wind farm while the remainder $230m will be used for the Solem solar plant.

The London-based principal investment firm will additionally invest nearly $200m alongside minority partners to fill in the remaining amount needed for the construction of the projects.

Cubico aims to make the two renewable energy projects operational by the fourth quarter of next year.

The financing for the El Mezquite wind project will be handled by the North American Development Bank and a couple of Mexican development banks in Bancomext and Banobras.

On the other hand, the Solem solar plant will get financing from the Inter-American Investment Corporation, the Canadian Climate Fund, China Co-Financing Fund, the International Finance Corporation, Mitsubishi UFJ Financial Group, Bancomext and Banobras.

Mezquite wind farm and Solem solar power plant are both backed by power purchase agreements (PPAs) which were bagged during the second long-term electricity auction of Mexico in September 2016.

Cubico Americas head Ricardo Diaz said: “We are very proud of having reached this ground-breaking milestone for two of our projects which are amongst a handful, from either the 1st or 2nd auction in Mexico, that have been able to raise third party financing; confirming Cubico’s leadership in the renewable energy sector in Mexico.

“We now plan to continue consolidating our presence in the market supporting the government and selected local developers to achieve their clean energy ambitions in the country, as we are doing in the rest of the region.”