Sumitomo Mitsui Banking Corp. has agreed to finance two solar projects in Mexico totaling 144 MW for Spanish developer OPDEnergy.
The assets are the 106.5 MW Andalusia II project in Coahuila de Zaragoza and the 37.7 MW Aguascalientes I project in Aguascalientes. They are expected to cost a combined $86 million.
The loan from SMBC will cover $24 million of the total investment, with the remaining $62 million coming from OPDEnergy as equity, says a representative of the company in Madrid.
The projects won 15-year power purchase agreements in Mexico’s second renewables auction in 2016 (PFR, 10/6/16).
At the time, OPDEnergy's managing director for Mexico, Andreu Saladié, acknowledged that the low pricing of the PPAs would result in a less debt-heavy capital structure and more equity investment (PFR, 6/30/2016).
Construction started early this year. OPDEnergy is handling the engineering, procurement and construction of the plant as well as its operations and maintenance. The project is expected to come online by the end of the year.