The Chairman of Iberdrola, Ignacio Galán, and the President of the Mexican Government, Andrés Manuel López Obrador, met this morning and announced the start of a new phase following the signing of an agreement of intent between subsidiaries of Iberdrola México and México Infrastructure Partners (“MIP”), announced today. Both presidents are committed to advancing the development of renewable energy in the country.
The operation will be supported by the Government of Mexico through the financial support of the Mexican National Infrastructure Fund (Fonadin) and other public financial entities.
In addition, Iberdrola Mexico will continue to serve its existing customers, and both parties will work together to try to resolve the various disputes that have arisen in the country in recent years.
Andrés Manuel López Obrador, President of the Mexican Government, has declared that “the agreement reached with Iberdrola, which allows progress to be made in the implementation of Mexico’s new energy policy, marks the beginning of a new stage in which the company will actively participate in the country’s renewable energy development”.
Ignacio Galán, Iberdrola Executive Chairman, said that “Iberdrola is grateful for the support and flexibility shown by the Mexican government in reaching this agreement, and considers Mexico a strategic country with potential for growth and expansion, where it will show its support for Mexico and the state by developing renewable capacity”.
Iberdrola Mexico and Mexico Infrastructure Partners (MIP) have today signed a memorandum of understanding, whereby the trust led and managed by MIP will acquire 8,539 MW of installed capacity. Of the total, 8,436 MW corresponds to combined cycle gas and 103 MW to wind.
Of the plants included in the agreement, 87% of the total installed capacity to be divested currently operate under the regime of Independent Energy Producers, contracted with the Federal Electricity Commission (CFE). These plants include the combined cycles of Monterrey I and II, Altamira III and IV, Altamira V, Escobedo, La Laguna, Tamazunchale I, Baja California, Topolobampo II and Topolobampo III, as well as the wind asset La Venta III. The privately operated combined cycle gas plants of Monterrey III and IV, Tamazunchale II and Enertek are also included in the agreement.
The agreed value for the sale amounts to approximately $6 billion, which may be modified based on the closing date of the transaction and other adjustments.
The transaction is subject to the agreement and the signing of definitive contracts by the parties, as well as obtaining the necessary regulatory approvals and the fulfilment of certain conditions that are standard in this type of operation.
The operation has the financial support of the National Infrastructure Fund of Mexico (Fonadin) and other public financial entities associated with the Government of Mexico.
The Iberdrola Group, through the new investments it will carry out in Mexico, will reaffirm its leadership in the development of renewable energy in the country.
