FOR IMMEDIATE RELEASE
La Bufa wind farm in Zacatecas will sell power to help Volkswagen reach renewable energy goals at the largest automotive plant in Mexico; Milbank also advised MPG in sale of equity in the project to First Reserve
NEW YORK, December 7, 2015 - Adding to its long list of major alternative energy deals in Latin America, Milbank, Tweed, Hadley & McCloy LLP has represented Mexico Power Group (MPG) in two transactions related to the construction of a 130 MW wind farm in north-central Mexico.
Milbank advised MPG in the development and financing of La Bufa wind farm in Zacatecas, Mexico. Upon completion, La Bufa will sell power to Volkswagen de México to help the automotive giant boost the use of renewable energy at its factory in Puebla, the largest auto plant in Mexico.
Debt financing for the project is being provided by Sumitomo Mitsui Banking Corporation, The Korea Development Bank, Nacional Financiera and Bancomext. Initial funding closed on December 4.
Milbank concurrently represented MPG in structuring its partnership with prominent energy private equity investor First Reserve, which has acquired an ownership stake in La Bufa. MPG will build the facility in concert with Cannon Power Group and Gamesa, which is providing the wind turbines.
Milbank’s deal team was led by Global Project Finance partner Allan Marks, who has worked on large renewable energy financings in the U.S. and Latin America, including phases 1 and 2 of the Tres Mesas wind power project in Mexico which closed earlier this year, the 115 MW El Arrayán project in Chile, that country’s largest wind farm, and numerous solar power projects.
“Despite its substantial oil reserves, Mexico has shown a serious commitment to developing renewable energy projects and the country offers significant opportunities for wind energy, as represented by La Bufa in the state of Zacatecas,” Mr. Marks said.
“We’re pleased to have worked closely with Mexico Power Group in structuring the large funding package required for construction of La Bufa by Sumitomo, KDB, Nacional Financiera and Bancomext, as well as in helping MPG negotiate its partnership with First Reserve, one of the world’s preeminent energy investors,” he added.
“This is a prime example of our project finance, renewables, M&A and Latin America expertise coming together to complete two complementary transactions in quick succession.”
In addition to Mr. Marks, other members of the Milbank team advising MPG included Corporate partner Adam Moses, as well as of counsel Michael Dayen, and associates Miguel Duran and Soo Hwang (all based in Los Angeles) and Brian Lee (based in New York).
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm that has been providing innovative legal solutions to clients throughout the world for nearly 150 years. Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Seoul, Singapore, Tokyo and Washington, DC.
The firm’s lawyers provide a full range of legal services to the world’s leading commercial, financial and industrial enterprises, as well as to institutions, individuals and governments. Milbank’s lawyers meet the needs of its clients by offering a highly integrated and collaborative range of services across key practice groups throughout its global network. Milbank’s integrated practice is underpinned by its attorneys’ acknowledged technical excellence, sectorial experience and a strong tradition of innovation and client service.
