Shearman And Sterling

News June 11, 2019

Construction Financing for Mexican Solar Photovoltaic Project

Shearman & Sterling represented Bancomext, Natixis, and Société Générale, as lenders, agents, L/C issuing bank and hedge providers, in connection with the financing of the construction by ENR AGS, S.A. DE C.V., a subsidiary of Neoen (a subsidiary of Impala SAS), of a 300 MWac solar photovoltaic project in the state of Aguascalientes, Mexico, and related transmission lines.

The deal is backed by 15-year power purchase agreements and 20-year clean energy certificates (CEL), via a contract awarded in Mexico’s Third Clean Energy Auction in November 2017. The project will sell some 70% of the electricity produced at a fixed price of $18.93 per MWh, and will sell the remainder to the spot market.  Lenders assumed a larger merchant risk in this transaction than previously seen in the Mexican market.

The Team