Sponsors Wind up Wind Financings

Renewable energy sponsors EDFEN and Mesoamerica Globeleq are gunning for a combined $470m in multilateral financing by year-end to build 2 separate turbines in Mexico and Honduras. In the first case, EDFEN, the renewables arm of France’s EDF, is seeking $200m from US Exim Bank, the IDB and the IFC to build at 68MW generator called La Ventosa in Mexico. Wal-Mart de Mexico will be purchasing the power generated by the unit. The funds are heard coming at 10-years or longer, says an executive close to the process, while pricing on the facility is still being negotiated. Meanwhile, Mesoamerica Globeleq, is seeking $270m in similarly long-dated funds for its Cerro Hula project in Tegucigalpa. US Exim is solely leading that transaction. The offtaker in this case is ENEE, the national energy board. “Financing is being done with [multilaterals] because of what’s going on in the commercial bank market,” says a banker eyeing the deals. Long-dated tenors are today nearly impossible for exotic project financings. Multilaterals, meanwhile, can dish out funds for these projects at below market rates thanks to a lower cost of funds and the developmental agenda. Closings are expected by year-end, says the banker. US Exim has hired NordLB to advise it on the transactions.