Macquarie Mexican Infrastructure Fund, Fomento Económico Mexicano buy 396-MW wind farm in late-stage development in Oaxaca, Mexico, from subsidiaries of Preneal for about US$89M
March 18, 2011
– * Largest single-stage wind energy project in Latin America
* Total transaction enterprise value of MXN$1.06 billion (approximately US$89.0 million)
Macquarie Mexican Infrastructure Fund (“MMIF”) today announced its participation in an equity consortium (the “Consortium”) that has acquired Energía Alterna Istmeña, S. de R.L. de C.V. and Energía Eólica Mareña, S.A. de C.V. (the “Project Companies”) from subsidiaries of Preneal, S.A. (“Preneal”) for a transaction enterprise value of MXN$1.06 billion (approximately US$89.0 million).
The Project Companies are the owners of a 396 MW late-stage wind energy project in the south-eastern region of the State of Oaxaca (the “Project”). The Project is located along the Isthmus of Tehuantepec where average regional wind speeds exceed 8.5 meters per second. The area is regarded as the best wind resource in Mexico and one of the windiest regions in the world.
The Consortium comprises MMIF with a 32.5% interest, Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) with a 45.0% interest and Macquarie Capital with the remaining 22.5% interest.
Having commenced development in 2003, Preneal has brought the Project to an advanced stage. With the support of the Project’s local team, the Consortium will finalize the development of the Project and secure long term financing in the lead-up to construction.
Subsidiaries of FEMSA and Cervecería Cuauhtémoc Moctezuma, an operating company of Heineken N.V., will purchase the output of the Project under 20-year power purchase agreements.
The Consortium has contracted Vestas WTG Mexico, S.A. de C.V., a subsidiary of Vestas Wind Systems A/S (“Vestas”), to complete the engineering, procurement and construction of the Project, including the supply of 132 Vestas V90-3.0 MW wind turbines. Vestas will also assume ongoing service and maintenance obligations. Having installed more than 43,000 turbines in more than 65 countries, Vestas is the world’s largest wind turbine manufacturer and has considerable experience in IEC class I sites similar to the Project site.
The Consortium has notified the transaction to Mexico’s Federal Competition Commission and is in the process of obtaining the Commission’s final approval for the transaction.
“We are excited to have this project serve as the first renewable energy investment in MMIF’s portfolio,” said Jonathan Davis Arzac, Executive Chairman of MMIF.
“We are pleased that key members of the existing project development team will continue to work with us on the Project. This continuity of management will ensure that it is business as usual for the Project so local communities can expect to see little change under the new ownership,” added Mr. Davis Arzac.
Mr. Davis Arzac continued, “This is an exciting acquisition for us to undertake given its scale, advanced stage of development, strategic location and backing from strong long-term partners like FEMSA and Cervecería Cuauhtémoc Moctezuma.”
About Macquarie Mexican Infrastructure Fund
Macquarie Mexican Infrastructure Fund (MMIF) is Macquarie’s first managed fund in Latin America, and is the first peso-denominated fund focused solely on investment opportunities in Mexican infrastructure projects. The Fund targets investments across infrastructure asset classes that include roads and rail, airports, ports, water and wastewater, energy and utilities, as well as social and communications infrastructure. Cornerstone investors in MMIF include Mexico’s National Infrastructure Fund (FONADIN), a number of Mexican pension funds, as well as Macquarie Group.
About Macquarie Group
Macquarie Group (Macquarie) is a global financial institution, deriving its revenue through the provision of a diversified range of services to clients, including banking, financial advisory, and investment & funds management services. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries and employs more than 15,400 people (as of December 31, 2010). Assets under management total more than US$307 billion (as of September 30, 2010). For more information, visit www.macquarie.com.