Enel Green Power is to sell majority stakes in Mexican renewable energy projects totalling 1.7GW to Canadian institutional investor Caisse de dépot et placement du Québec and Mexican pension fund investor CKD Infraestructura México SA de CV.
Under the terms of the deal, Enel has agreed to sell 80% of the share capital in three operating plants totalling 429MW and five under construction projects (1.283GW) held in a newly-formed Mexican holding company.
The portfolio consists of the 427MW Villanueva 1, 327MW Villanueva 3 and 238MW Don José solar plants and the 198MW Amistad, 200MW Dominica, 129MW Palo Alto, 93MW Salitrillos and 100MW Vientos del Altiplano wind farms.
The deal is worth $1.35bn, of which $340m is for the 80% sale, while $1.01bn is related loans granted by the buyers.
The company will continue to operate the plants and complete those still under construction.
In addition, from 1 January 2020 Enel may transfer additional projects to the holding company and could become the majority shareholder.
Enel Green Power head Antonio Cammisecra said the agreement is a “further step into the build, sell and operate model”, that combined with consolidated investments, “will foster the growth of our renewables footprint”.
The closing of the deal is subject to a number of pending ordinary conditions and receipt of the necessary authorisation from the Mexican antitrust authorities and is expected to occur by the end of 2017, Enel said.
Enel will retain direct control of about 300MW of capacity in Mexico comprising wind, solar and hydro.
Image: Enel
Enel sells 1.7GW Mexico stakes
80% interest offloaded in 992MW of solar and 720MW of wind projects
By EBS