OPDEnergy signs US$86m financing from SMBC for two solar projects

OPDEnergy has signed two project financing deals with Sumitomo Mitsui Banking Corporation (SMBC) for US$86 million to build two solar photovoltaic plants in Mexico.

The financing will cover two projects that are in an advanced stage of construction: the 106.5 MWp Andalusia II solar plant located in the state of Coahuila de Zaragoza, and the Aguascalientes Sur I solar park, with 37.7 MWp in the state of Aguascalientes. The energy generated by both plants will mainly be used to supply household electricity demand, which will contribute to improving Mexico’s energy mix.

The construction of this plant started at the beginning of 2019 and is expected to be completed by the fourth quarter of 2019. The success of this project financing deals and the good execution pace of the works demonstrate the high capacity of OPDEnergy for the development and construction of this type of project. The company will be responsible for the operation and maintenance (O&M) of the plant, and the Engineering, Procurement, and Construction (EPC).

On the other hand, with this transaction, the group proves its capacity to finance projects in the Mexican market, by obtaining resources from a prestigious firm such as SMBC, which acted as the sole structuring bank in the transaction. In addition, it is important to note that by the end of the construction stage OPDEnergy’s total investment in both projects will have amounted to US$62 million.

These plants are part of the projects awarded within the framework of the second renewable energy auction in Mexico for 2016. Thus, the company has entered into a 15-year Power Purchase Agreement (PPA), and a 20-year Clean Energy Certificates (CELs).