New details have emerged on the plans for the financing of the 108 MW Energía Sierra Juárez II wind project being developed by IEnova and Saavi Energía in Mexico.
Sumitomo Mitsui Banking Corp., Mizuho, and the North American Development Bank are arranging the $170 million loan (PFR, 2/25).
The debt package will be split into two tranches with different tenors—an 18-year tranche provided by the commercial banks and a 21.5-year loan from NADB.
The deal is expected to reach financial close by mid-March.
The project is an expansion of the existing Energía Sierra Juárez wind farm in Tecate, Baja California. Both phases have 20-year power purchase agreements to sell their output across the U.S. border to Californian utility San Diego Gas & Electric.
IEnova and SDG&E share the same parent company, Sempra Energy.
The proceeds of the $170 million loan will cover the entire cost of the expansion project. However, the loan is backed by the entire project, not just the expansion.
Vestas is the project's engineering, procurement, and construction contractor and will also operate and maintain it for 15 years.
It is expected to be brought online in the second quarter of 2021 (PFR, 2/20).
The first phase of the project was brought online in June 2015.
Saavi is a portfolio of British private equity firm Actis. Actis acquired its stake in the Energía Sierra Juárez project when it bought InterGen’s 2.3 GW Mexican portfolio in 2018 for $1.256 billion (PFR, 1/8/18).