Press Release

Macquarie Mexican Infrastructure Fund acquires interest in late-stage wind energy project in Oaxaca, Mexico

Mexico City, 17 March 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."

 

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