Mexican Energy Project Plans Bond

SolMex Energy, a joint venture formed by Mexican development company Grupo Musa and US-based renewable energy company Synergy Technologies, is planning to raise funds for a $1bn-plus solar power generation project in Tecate. Currently, SolMex has a commitment from Finexim for the facilitation of $720m in funds, which is expected to cover 200MW, or the first 4 phases. It includes a $160m, 25-year non-callable bond with a fixed interest rate under 5% is expected to cover the 50MW first phase, with expected issuance in the second quarter, through Finexim and BB&T Capital Markets. Other funding sources are also bidding on the project, says a person familiar with the deal, which is being developed in 50MW phases to 450MW total capacity. The SolMex project will start off supplying power for the nearby region, but down the road could sell power to southern California as well. This is Grupo Musa and Synergy’s first project together. Multinational business development firm Asian Pacific Development Corporation is advising on the project and its financing.