Wind Bonds Expected this Week

After not emerging last week, the Oaxaca II and IV projects were expected to price as soon as the beginning of this week their respective $164.5m and $167.5m 2031 bonds, according to sources following the process. The pair indirectly owned by Spain’s Acciona had been aiming to complete a deal by Friday, having emerged with yield guidance of 6.5%-area Tuesday. If completed, the two 144A/RegS senior secured transactions, each with an average life of 13 years, would represent the first wind energy project bonds in LatAm. Pricing is being viewed by many in terms of a spread to Mexico’s state-owned CFE, the project’s offtaker, whose 2021 and 2042 bonds yield around 3.20% and 4.90%, respectively. BBVA, BNP, Credit Agricole, Santander and Societe General are managing the deals, each rated BBB minus.