Acciona issues bonds for Mexican wind farms

UNITED STATES: Acciona has successfully issued bonds for two of its operational wind farms in Mexico, in what is the first ever financing of a non-US project on the US capital markets.

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The Oaxaca II and Oaxaca IV wind farms each have an installed capacity of 102MW comprising 68 1.5MW turbines, and are based in the Oaxaca region in southern Mexico. The bonds for the projects raised $148.5 million and $150.2 million respectively.

Acciona's local subsidiary Acciona Energìa Mexico will use the funds raised by the bonds to pay off the projects' existing bank debt facilities and other costs.

Both bonds will run until December 2031 and guarantee investors a return of 7.25%. They were given an investment grade credit rating of BBB- by both Standard and Poor's and Fitch, thanks largely to their 20 year power purchase agreements (PPAs) with Mexico's state-owned utility Comisión Federal de Electricidad (CFE).

The overall breakdown of investor type saw allocations of 2% to private banks, 10% to hedge funds, 27% to life insurers and 61% to pension funds.

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