Oaxaca Wind Farm Takes Off

Banco Espirito Santo and BBVA are leading a 15-year senior loan paying around 450bp over Libor, part of a $375m package for the Eurus wind farm in Oaxaca, says a banker on the deal. The financing includes a $325m IFC A/B loan and a $50m IDB tranche. The size split between the A and B portions has apparently not yet been finalized. DEG, Proparco, Bancomext and Nafinsa are involved, while Banobras and CFE are heard to be participating. The transaction is expected to close next month. Total project costs are estimated by the IFC at $536m for construction of the wind farm and related transmission assets. The IFC had planned to invest up to $55m in senior debt for its own account, and approximately $20m in subordinated debt. The 250MW project is being developed by AE, part of the energy division of Spain’s Acciona, which owns 94%. The off-taker and 6% shareholder is Cemex. Eurus is a special purpose vehicle for the development, construction and operation of the wind farm and associated transmission assets in the La Venta Ejido, Juchitan de Zaragoza municipality.