Milbank LLP represented more than a dozen institutional investors and a syndicate of commercial bank lenders, including Citi, BNP Paribas, Sumitomo Mitsui Banking Corporation and Banco Nacional de Comercio Exterior, S.N.C. (Bancomext), in connection with a hybrid 4(a)(2) private placement, term loan and letter of credit facility for an 850 MW greenfield combined cycle natural gas-fired power plant in Mexico called EVM II. Located in the Axapusco municipality, approximately 60 kilometers northeast of Mexico City, the project is part of a broader modernization plan instituted by Comisión Federal de Electricidad, Mexico’s state utility, to meet Mexico’s growing energy needs in the critical Mexico City and Guadalajara regions. The US$740 million financing supports the development of EVM II by a joint venture between EVM Tenedora, S.A.P.I. de C.V. and EFS Global Energy B.V., a subsidiary of General Electric Company.
The Milbank team was led by practice group leader of the firm’s Global Project Energy and Infrastructure Finance partner Dan Bartfeld with associates Jeff Leider, Genevieve Fox and Jacqueline Durand.
Mr. Bartfeld said: “We are very pleased to have advised on such an important and sophisticated financing in the Mexican energy market. This deal and, in particular, the composition of the lender and investor group is indicative of the continuing success of Mexico’s recent energy market reforms and the growing global appeal of major capital investment in Mexico.”
Milbank is the market leader in power projects globally, with a particular focus in Mexico and Latin America. Jeff Leider said: “Milbank’s depth of experience in Mexico enables us to shape creative solutions with local and international partners to address each financing’s specific needs. We are thrilled to be part of another successful major Mexican power project.”
