OTPP, PSP-owned Cubico to invest $700 mln in Mexican power projects

Cubico Sustainable Investments has been awarded power purchase agreements in Mexico’s 2nd long-term electricity auction for the 250 megawatt Mezquite wind project and the 290 megawatt Solem solar PV project. Cubico, a U.K.-based renewable energy business, said it will raise financing for US$500 million and will invest, along with its minority partners, US$200 million in equity to start the construction of the projects and have them operational by 2018-2019. Cubico is jointly owned by Ontario Teachers’ Pension Plan (OTPP) and Public Sector Pension Investment Board (PSP Investments).

PRESS RELEASE

Cubico Sustainable Investments wins 540 MW of PPAs for wind and solar PV projects in Mexico

Cubico wins power purchase agreements in Mexico’s 2nd long-term electricity auction for 250 MW wind farm and 290 MW solar PV project

Investment will total US$ 700 million, with the projects to become operational in 2018 and 2019

London, 6 October 2016: Cubico Sustainable Investments (“Cubico”), a global leader in renewable energy, has been awarded power purchase agreements (“PPAs”) in Mexico’s 2nd long-term electricity auction for the 250 MW Mezquite wind project and the 290 MW Solem solar PV project, representing a total investment of around US$700 million.

Ricardo Diaz, Head of Americas at Cubico said: “This is a very important milestone that positions Cubico among the top players in the renewable energy sector in Mexico.”

Cubico will raise financing for US$ 500 million and will invest, along with its minority partners, US$ 200 million in equity to start the construction of these projects early next year and have them operational between 2018 and 2019.

Osvaldo Rance, Head of Mexico at Cubico, added: “This is the beginning of a new era for Cubico in Mexico that sets solid foundations to move forward with our growth plan and long-term investment strategy in the country.”

The 250 MW Mezquite wind project is located in the state of Nuevo Leon in the Northeast of Mexico and forms part of an 800 MW portfolio of wind projects under development acquired by Cubico from Banco Santander in 2015.

The 290 MW Solem solar PV project is located in the state of Aguascalientes in Central Mexico and is owned by Cubico and its partner Alten Energias Renovables, an Independent Power Producer focused on PV technology in Southern Europe, Africa and Latin America.

Nacho Ruiz, Head of Investments & Strategy for the Americas at Cubico, said: “This project in Aguascalientes is Cubico´s first solar investment in the Americas and the
most sizable PV asset in our portfolio, which allows us to diversify between wind and solar technologies”.

Media contacts
For Cubico Sustainable Investments:
Cubico Communications
Jonathan Blacker
+44 (0) 203 805 3939
Jonathan.Blacker@Cubicoinvest.com
FTI Consulting – London
Ben Backwell
+44 (0) 203 727 1798
Cubico@fticonsulting.com
FTI Consulting – Mexico
Pablo Zárate
pablo.zarate@fticonsulting.com
+52.55.5540.8018
+52.1.55.4107.9795

About Cubico
Founded in May 2015, Cubico Sustainable Investments is a major player in the renewable energy sector. Cubico’s global portfolio in eight countries is worth an estimated US$ 2 billion, with an installed gross capacity of approximately 2 GW. The company has a presence in different geographic locations, including the United Kingdom, Ireland, Italy, Spain, Portugal, Brazil, Mexico, and Uruguay. Cubico is headquartered in London and has offices in São Paulo (Brazil), Milan (Italy) and in Mexico City.
www.cubicoinvest.com

Photo courtesy of Alten Energias Renovables