Engie arranges green loan for 721-MW renewables push in Mexico

French power utility Engie SA (EPA:ENGI) has opted for a green financing arrangement to move forward with the 721-MW portfolio of wind and solar projects in Mexico, spearheaded by its joint venture (JV) with Tokyo Gas Co Ltd (TYO:9531).

Engie has finalised the deal with Tokyo Gas, which saw the Japanese gas utility’s affiliate acquire the parent company’s 50% stake in the Mexican JV Helios EnTG S.A.P.I. de CV.

As previously announced, Helios EnTG manages two wind and four solar projects awarded to Engie in the Mexican renewable energy auctions.

The French company’s legal advisor in the green loan transactions, Shearman and Sterling LLP, informed that the financial close had been reached for two projects in the portfolio. The close for the remaining four is expected to take place in the coming months.

The overall deal that the law firm was overseeing involved the construction financing for each project in the portfolio and an operations phase portfolio holding company financing. The arrangement includes the option for financing an additional solar park or wind farm project during the construction or operations phase, pending certain conditions.

Financial details have been withheld.

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