Desarrollos Eolicos Mexicanos obtains project financing for wind energy plant in Mexico
Clients Desarrollos Eolicos Mexicanos, S.A. de C.V.
Jones Day represented Desarrollos Eólicos Mexicanos, S.A. de C.V. and Desarrollos Eólicos Mexicanos de Oaxaca 2, S.A.P.I. de C.V. ("Demex 2"), subsidiaries of Grupo Renovalia, in connection with a US$90 million equity bridge financing provided by Santander Capital Structuring, S.A. de C.V., a subsidiary of Banco Santander, (Mexico) S.A.; Institución de Banca Múltiple; Grupo Financiero Santander; and other financiers, for the development of a 137 MW wind energy in Oaxaca, Mexico. This is the first equity bridge financing for a project of this nature provided by Santander in Mexico.
Santander will contribute 80% of the initial capital required for the project in exchange for an 80% equity interest in Demex 2 and an option to acquire the remainder 20%. The structure contemplates that Renovalia will maintain control of the development and administration of the project, and includes an option for Renovalia to repurchase all shares acquired by Santander.