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Norte II: Termination innovation
15 April 2011
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[Norte]
[kepco]
[samsung]
[techint]
Korea Electric Power (Kepco), Samsung C&T and Techint closed the $395 million financing for the 433MW Norte II independent power project in Mexico on 11 March. The deal is the first non-recourse financing for a Mexican IPP for several years, and the first under a new termination regime that exposes lenders to greater performance risk than earlier versions.
The deal is notable for Kexim involvement, which allowed the sponsors to benefit from a longer tenor of 21 years than would have been possible with just commercial lenders. Many market participants also say the deal demonstrates a growing Kexim interest in projects in the Americas, though the financing is far from its first in the region.
The US dollar-denominated financing includes $325 million in debt and $70 million in equity. Kexim provided a $174 million direct loan and guaranteed an $86 million loan from Credit Agricole CIB ($24.84 million) and...
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