Mexico Infrastructure Partners FF (MIP) will drive energy projects

Mexico Infrastructure Partners FF (MIP) will drive energy projects in the Aztec country as part of its efforts to strengthen this sector.

Mexico Infrastructure Partners FF is a fund created in August 2022 by Mexico Infrastructure Partners and will issue a Development Capital Certificate (CKD) with an initial amount of $484 million, which will be used to invest in electricity projects.

The Mexico Infrastructure Partners FF investment vehicle will be divided into three series, and the public offering is scheduled for September 19th on the Mexican Stock Exchange (BMV), as outlined in the placement prospectus. The CKD will encompass a total amount of $2.42 billion. These resources will be called upon as needed by the issuer, using the mechanism known as capital calls.

The trust will have the ability to make direct or indirect investments related to the planning, design, construction, development, operation, and maintenance of electricity projects.

Mexico Infrastructure Partners was the fund that reached an agreement with the Spanish company Iberdrola back in April.

According to the budget, they will be able to purchase 13 electricity generation plants for an approximate total of $6 billion.

These assets include 12 combined cycle plants with a total installed capacity of 8,436 megawatts (MW) and one 103 MW wind farm.

Mexico Infrastructure Partners promoted

Víctor Gómez, a professor of Economics at the Instituto Tecnológico Autónomo de México (ITAM), explained that the funds raised by Mexico Infrastructure Partners FF through the Development Capital Certificate, from institutional investors like Afores, will be used to finance the acquisition of Iberdrola’s electricity plants.

Gómez also noted that the Ministry of Finance announced that 60% of the project would be financed through debt issuance, while the remaining 40%, approximately 45,000 million pesos, would come from contributions by the National Infrastructure Fund (Fonadin) and institutional investors.

Another portion of the resources, around 66,500 million pesos, will be provided by development banks such as Nafin, Banobras, and Bancomext, along with funds from institutional investors.

The Federal Electricity Commission (CFE) will not own the plants but will be responsible for their operation, ensuring the generation of electricity.

The expectation is that the acquisition of these 13 electricity generation plants will be completed before the end of this year, as announced in April.

As for MIP, it is an infrastructure manager with a presence in Mexico and Latin America with $3.7 billion in assets under management.

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