International lenders have announced the US$535 million permanent financing for a 380-mile natural gas pipeline running between Samalayuca, Chihuahua and Sásabe, Sonora.
The financing, in which a Milbank Global Project, Energy and Infrastructure Finance team advised BBVA Bancomer S.A., Bank of Tokyo-Mitsubishi UFJ, Ltd., CaixaBank SA, Mizuho Bank Ltd, and Sumitomo Mitsubishi Banking Corp., repays a 2016 bridge loan to the pipeline’s owner, Carso Gasoducto Norte, S.A. de C.V., a subsidiary of Mexico City-based Grupo Carso, S.A.B. de C.V. The transaction closed on March 10, 2017.
The 36-inch pipeline’s carrying capacity of 472 million cubic feet per day will supply Mexico’s state-owned electricity provider Comisión Federal de Electricidad (CFE) with much-needed natural gas.
Mr. Bartfeldm, Milbank partner, said:
“As Mexico continues to develop and expand its natural gas transport infrastructure, to the benefit of both Mexican consumers and US natural gas providers, Milbank is gratified to find itself once again the go-to law firm for the financing of gas infrastructure projects.”
Mr. Michalchuk, another Milbank partner, added:
“This financing indicates once again that international lenders have confidence in CFE as the anchor offtaker for successful project financings in Mexico and bodes well for future financings to come.”