The prize recognises ACCIONA’s pioneering use of project bonds to finance wind farms in Mexico.
The placement with institutional investors potentially opens up a new market for the long-term finance of sustainable energy projects in Latin America.
ACCIONA, a global renewable energy, infrastructure and water services group, has been awarded one of Project Finance Magazine’s prestigious “Deal of the Year” awards for the pioneering use of long-term project bonds to finance two wind farm developments in Mexico.
In August 2012, ACCIONA raised $298m in a private placement of project bonds to finance its Oaxaca II and IV wind farms, each with a capacity of 102MW. The 2031 notes, with principal amounts of $148m and $150m, carry a 7.25% yield. These placements marked the first time ACCIONA funded wind farms through long-term bonds, underscoring the Company’s position as a pioneer in the development of renewable energy projects.
The placement of project bonds represented a big vote of confidence in ACCIONA’s technology, leadership and strong track-record in the renewable energy industry. It also allowed ACCIONA to diversify its sources of finance for long-term clean energy infrastructure projects.
The issuance also marked the first project bond placement of its kind in Latin America, potentially opening up a new market for the long-term finance of sustainable infrastructure projects in the region.
In awarding ACCIONA the “Latin American Project Bond Deal of the Year 2012”, Project Finance Magazine said: “ACCIONA’s Oaxaca projects were probably the best candidates for the first Mexican renewables issues. ACCIONA is the most accomplished wind developer in Mexico.”
The approximately 20-year corporate bonds received an investment grade rating by Fitch Ratings and Standard & Poor’s.
The Oaxaca II and IV wind farms, each with a capacity of 102 MW, entered into operation in February and March 2012. The two wind-farms have long-term contracts to supply clean electricity to Mexico’s Federal Electricity Commission. ACCIONA is a renewable energy leader in Mexico, with a total wind energy capacity of 556.5 MW in operation. ACCIONA is committed to developing new renewable energy projects in Mexico – for itself and for third parties – to help fulfill the country’s clean energy potential.