London-headquartered Cubico Sustainable Investments has reached financial close on two Mexican renewable energy facilities, the 250 MW El Mezquite wind farm in Nuevo Leon and the 350 MW Solem solar photovoltaic project in Aguascalientes.
The total amount of non-recourse project finance debt raised was $450 million: $220 million for El Mezquite and $230 million for Solem. Both projects were awarded power purchase agreements in Mexico’s electricity auction in September 2016.
The El Mezquite wind farm will be financed by the North American Development Bank and Mexican development banks Bancomext and Banobras.
In addition to the debt amount, Cubico will invest, along with other minority partners, close to $200 million of equity to construct the projects in order to have them operational by the fourth quarter of 2018.