GS Infrastructure Partners and GBM Infraestructura acquire wind project in Mexico

Oak Creek Energy Systems, Inc. has completed the sale of the first two construction-ready stages of the Tres Mesas Wind Project, a 148.5MW wind energy project in Tamaulipas, Mexico, to an affiliate of GS Infrastructure Partners (GSIP) and GBM Infraestructura (GBMI).

The equity investment by GSIP and GBMI is expected to support and complete construction of Phases 1 and 2 of the Tres Mesas Wind complex, representing one of the largest sustainable energy projects in Mexico to date.

Sigma Alimentos, which is a subsidiary of ALFA, and Walmart de México have committed to power purchase agreements with the project companies. In partnership with GSIP and GBMI, Oak Creek Energy will continue to support the projects through its Mexican operating company, Oak Creek de México, pursuant to construction and long term project management contracts.

As part of the transaction, which closed on March 31, 2015, Overseas Private Investment Corporation (OPIC) and North American Development Bank (NADB) have agreed to provide senior debt financing. OPIC will fund a USD 81 million loan for the 62.7 megawatt Phase 1 through U.S. capital markets issuance of “green guaranties” (assets adhering to the Green Bond Principles), and will fund up to USD 105 million equivalent for the 85.8 megawatt Phase 2 in its first Mexican peso denominated loan through the issuance of Certificates of Participation purchased by Banco Mercantil del Norte (Banorte). NADB will provide a peso loan to Phase 2 for approximately USD 55 million.

Niels Rydder, CEO of Oak Creek Energy, said:

“We are proud of the results we’ve achieved by working closely with the United States and Mexican governments to create these custom-tailored, renewable energy projects that will provide eco-friendly and inexhaustible energy for a sustainable, bright energy future.”

Morrison & Foerster advised Oak Creek Energy Systems, Inc. in the sale process.