Aug 9 (Renewables Now) - London-based Cubico Sustainable Investments has achieved financial closing for two renewable energy projects in Mexico totalling 600 MW, after raising USD 450 million (EUR 385m) in debt.
The company has secured USD 220 million in non-recourse project finance debt for the 250-MW El Mezquite wind project in Nuevo Leon state and a further USD 230 million for the 350-MWp Solem solar photovoltaic (PV) scheme in Aguascalientes, it said on Tuesday. The same day, the International Finance Corporation (IFC) announced it will allocate USD 45 million to support the construction of the Solem I and Solem II PV parks.
Funds for the wind project came from the North American Development Bank and the Mexican development banks, Bancomext and Banobras.
In addition to the debt financing, Cubico and minority partners will invest nearly USD 200 million of equity to build the two facilities by the final quarter of next year.
Both the El Mezquite and Solem projects have power purchase agreements (PPAs) in place. The contracts were awarded in Mexico’s second long-term electricity auction in September 2016.
(USD 1.0 = EUR 0.854)