Cubico Sustainable secures financing of two PV plants in Mexico

International Finance Corporation (IFC), a member of the World Bank Group focused on private sector development, will allocate $45 million to finance the construction and commissioning of »Solem I« and »Solem II«. The two PV power plants with a combined capacity of 350 MW will connect with the Mexican national network of the Federal Electricity Commission (CFE). The plants will be built in the municipality of El Llano, state of Aguascalientes, Mexico. Once completed, both plants will together constitute one of the largest photovoltaic solar energy project in Latin America and the Caribbean, says IFC.
The sponsors of »Solem I« and »Solem II« are UK renewable energy and water investment company Cubico Sustainable Investments Ltd. and Alten RE Developments America. According to Cubico, the 350 MW »Solem« PV project has been awarded with power purchase agreements (PPA) in Mexico’s 2nd long-term electricity auction in September 2016. The financing plan also includes loans from several other international financial organizations from Latin America, Canada, China and Japan. The total amount of non-recourse project finance was $230 million.
In total, Cubico raised $450 million, $230 million for »Solem« and $220 million to finance a wind project called »El Mezquite«. According to Ricardo Diaz, Head of Americas at Cubico, the company plan to continue consolidating its presence »in the market supporting the government and selected local developers to achieve their clean energy ambitions in the country, as we are doing in the rest of the region.« El Mezquite wind project will be financed by the North American Development Bank and the Mexican development banks, Bancomext and Banobras. Cubico will invest, along with other minority partners, close to $ 200 million of equity to construct these projects to have them operational by Q4 2018.

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