MUFG is likely the sole commercial bank financing a solar project developed by Cubico Sustainable Investments in Mexico, LatinFinance has heard.
Mexican development banks Banobras and Bancomext could also fund the solar project, sources away from the deal said. Pricing on the roughly 20-year loan starts around 200bp over Libor, they said.
“The structure was really aggressive,” said a Mexico City banker who declined to participate in the loan.
MUFG declined to discuss the loan, while Cubico did not return requests for comment.
Located in Aguascalientes, the 290 MW Solem photovoltaic project could also feature financing from the IFC and IIC.
The IFC could grant up to $70m, while the IIC could arrange up to $160m in 20-year financing, split between a $110m direct loan and $50m from the China Cofinancing Fund for Latin America and the Caribbean.
Cubico, a renewable energy company owned by Canadian pension plans Ontario Teachers’ Pension Plan (OTPP) and PSP Investments, got long-term power purchase agreements in October for Solem and the 250 MW Mezquite wind project. Cubico said it will raise $500m in financing and invest $200m in equity alongside its partners.
The 150 MW Solem I is scheduled to start commercial operations in September 2017, while the 140 MW Solem II is due to follow in June 2019. Construction includes building two electrical substations and a transmission line.
Cubico owns 70% of Solem, while Alten Renewable Energy holds the remaining 30%. Spain’s Grupo Ortiz, which owns 33% of Alten, will operate and maintain the plants.
The Canadian renewables unit and DEG, a subsidiary of German development bank KfW, requested up to $100m in market-rate financing from the North American Development Bank (NADB) for the Mezquite wind farm located in the state of Nuevo Leon.