Cubico seals finance on 600MW of Mexican solar and wind

Cubico Sustainable Investments, the UK-based renewables developer owned by two Canadian pension funds, has closed financing for its 350MW Solem solar and 250MW El Mezquite wind projects in Mexico.

Cubico secured contracts for the two projects in Mexico’s second clean-energy tender, held in late 2016, and they are due for commercial operation in late 2018 in the states of Aguascalientes and Nuevo Leon – at which time Solem will become the largest PV plant in Latin America.

Cubico raised $230m of non-recourse project finance debt for Solem and another $220m for El Mezquite from nearly 10 lenders, most of them development banks. Cubico itself will invest nearly $200m of equity.

“This titanic effort from all parties involved stands as tangible proof of the bankability of the PPA awarded in [Mexico’s] auction and the new legal framework that enabled us to raise competitive financing,” says Osvaldo Rance, Cubico’s head of Mexico.

Cubico, which owns 2.5GW of renewables capacity in eight countries across Europe and Latin America, was launched in 2015 by Spanish bank Santander and two Canadian pension fund giants – the Public Sector Pension Investment Board and Ontario Teachers’ Pension Plan. The two pension funds bought out Santander’s stake in 2016.

In late July, fast-growing Cubico named Stephen Riley its new chief executive.

While Cubico primarily focuses on large wind and PV plants, it recently acquired Spanish two concentrated solar power plants – Andasol 1 and 2 – totaling 100MW.