Gonzalez Calvillo instructed on Abengoa´s sale of Mexican energy project

Gonzalez Calvillo advised Macquarie Capital and Techint on the acquisition and financing of a 907 MW combined-cycle power generation facility in Mexico from Abengoa. 

Macquarie Capital is the advisory, capital markets and investment arm of Macquarie, the Australian financial services group. Techint is a construction conglomerate headquartered in Buenos Aires and Milan and with global operations covering engineering, construction, steel, mining, oil & gas, industrial plants and healthcare.

Abengoa is a Spanish multinational with operations in energy, telecommunications, transportation, and the environment. The company has also focused on development of new technologies in producing biofuels and biochemicals. The sale of the power site in Mexico, commonly referred to as Norte III, is said to be part of Abengoa´s divestment strategy and viability plan. The company filed for bankruptcy protection in November 2015 and is currently undergoing worldwide restructuring.

Norte III had been awarded a 25-year Power Purchase Agreement to construct, develop and operate the power plant in Ciudad Juárez, Mexico, to provide energy to the Mexican Comisión Federal de Electricidad (“CFE”). Techint will now serve as the EPC contractor.

While the value of the deal was not disclosed, the Macquarie-Techint consortium secured funds from 10 different financial institutions for the project. SMBC and Natixis acted as coordinating lead Arrangers; Bancomext, Crédit Agricole, GE, EDC, Norinchukin Bank, KDB, KfW, and Intesa Sanpaolo acted as mandated lead arrangers.

Partners Jorge Cervantes, Oscar Moreno and Cristina Massa led the Gonzalez Calvillo team which acted as Mexican counsel to Macquarie Capital and Techint. The companies instructed Milbank as US counsel.

The project finance lenders mandated Paul Hastings in the US and Mijares, Angoitia, Cortes y Fuentes in Mexico.

Clifford Chance and Garrigues advised the bridge lenders as US and Mexican counsel, respectively.

Abegoa retained DLA Piper in the US.