Enel gp

Enel has announced the sale of 80 per cent of its stake in its Mexican holding company.

The company’s Mexican operation controls its renewable portfolio in the country and is to be sold for $340m.

Through its renewables subsidiary Enel Green Power, Enel said it signed agreements with Canadian institutional investor Caisse de depot et placement du Quebec and the investment vehicle of Mexican pension funds CKD Infraestructura Mexico to sell the share capital of the holding company, which controls, through special purpose vehicles–three renewables plants in operation and a further five that are under construction, with a total capacity of 1.7 GW.
Enel Green Power
The entire deal is worth a total $1.35bn, with the sale of the stake accounting for roughly $340 million. The remaining $1.01 billion comprises financing granted to the holding company by the buyers, Enel said.

The eight SPVs own a portfolio consisting of three plants already in operation (a total of 429 MW) and five projects under construction (a total of 1,283 MW). The portfolio consists of about 1 GW from the solar power plants Villanueva I (427 MW), Villanueva III (327 MW) and Don José (238 MW) as well as about 0.7 GW from wind farms of Amistad (198 MW), Dominica (200 MW), Palo Alto (129 MW), Salitrillos (93 MW) and Vientos del Altiplano (100 MW). These plants hold long-term power purchase agreements (“PPAs”).

Following the closing, in addition to continuing to operate the plants already in operation and those under construction, indicated above, Enel will retain, in Mexico, direct control of about 300 MW of capacity already installed, represented by the wind plants of Stipa Nayaa (74 MW), Zopiloapan (70 MW) and Sureste (102 MW), and the hydroelectric plants of El Gallo (30 MW), Chilatan (12 MW) and Trojes (8 MW), as well as the solar plant COP 16 (134 kW).

Enel said it expects the deal to be completed by the end of 2017, adding that it will help the company cut its net debt.