Oaxaca I Launches $150m Club

BBVA and Santander are leading a $150m 7-year project deal for the Oaxaca I wind farm in Mexico. A banker not on the transaction but familiar with the sector estimates a price of 350bp-400bp over Libor. Bankers on the deal decline to talk about the margin. Banobras and Spain’s Instituto de Credito Oficial are expected to join, but the mini perm deal will likely not be opened up to other institutions, says a banker on the deal. “We will sign and close towards the end of June,” adds the banker. Cobra, a subsidiary of Spain’s Grupo ACS, is constructing the project, which has a PPA with the CFE and a $220m total cost. Oaxaca I will be followed by Oaxaca 2, 3 and 4, say bankers, who expect the sequels to raise $450m in debt between the 3 projects. Spain’s Acciona apparently won the bidding for those deals, bankers say. The new flurry of Mexican wind projects follow a $375m package for the Eurus wind farm in Oaxaca, which included a 15-year senior loan paying around 450bp over Libor. The financing includes a $325m IFC A/B loan and a $50m IDB tranche. Banco Espirito Santo, BBVA, DEG, Proparco, Bancomext and Nafinsa are involved, while Banobras and CFE are heard to be participating. The transaction is expected to close next month.