Shearman & Sterling advised the borrowers and sponsors in connection with the $235 (approximate) million financing for the development, construction and operation of two solar photovoltaic projects in Mexico – Solem I, a 150 MWac solar photovoltaic power plant and Solem II, a 140MWac solar photovoltaic power plant.
The Solem projects were awarded power purchase agreements in the second round of Mexico’s auction process in September 2016 and are the first projects in the round to obtain international financing. The two projects combined will become the largest photovoltaic solar power plant in Mexico and Latin America to date.
The Solem I project is being developed by Cubico Alten Aguascalientes Uno, S.A.P.I. de C.V. and the Solem II project by Cubico Alten Aguascalientes Dos, S.A.P.I. de C.V., both are wholly owned subsidiaries of Cubico Sustainable Investments Limited (75%) and Alten RE Developments America B.V. (25%), an affiliate of Sojitz Corporation.
The lenders to the long term financing are The Bank of Tokyo-Mitsubishi UFJ, the Inter-American Investment Corporation (acting on behalf of itself, the Inter-American Development Bank, the China Co-Financing Fund for Latin America and the Caribbean and the Canadian Climate Fund for the Private Sector in the Americas), the International Finance Corporation, Banco Nacional de Obras y Servicios Públicos, S.N.C., Institución de Banca de Desarrollo and Banco Nacional de Obras y Servicios Públicos, S.N.C., Institución de Banca de Desarrollo.
The Shearman & Sterling team included partners Gregory Tan
(New York-Project Development & Finance) and Azam Aziz
(New York-Derivatives); counsel Christian Rudloff (New York-Project Development & Finance) and Nathan Tasso (Washington D.C.-Tax); associates Augusto Ruiloba (New York-Project Development & Finance), Adam Sternberg (New York-Tax), and Uttara Dukkipati (New York-Corporate Group); and visiting attorneys Ana Maria Alpízar and Ignacio Valenzuela (both New York-Project Development & Finance).