Clifford Chance US LLP advised Mexican development bank Banco Nacional de Obras y Servicios Públicos ("Banobras") and EKF Denmark's Export Credit Agency ("EKF") in the approximately USD 466 million refinancing of two wind farms to be constructed by Energía Eólica del Sur in the municipalities of Juchitan and El Espinal in the state of Oaxaca in southern Mexico.

The two wind farms will have a joint capacity of 396 MW and are expected to become operational by late 2018. The transaction involved the purchase and refinancing of the obligations of several existing lenders, as well as the restructuring of the original project company, Mareña Renovables Capital S.A.P.I. de C.V.

The original financing closed on February 23, 2012; however, construction was delayed due to social unrest at the original project site in Santa Teresa, a municipality in San Dionisio del Mar in the Isthmus of Tehuantepec, Oaxaca. The original lenders, a group including the Inter-American Development Bank ("IDB"), Banco Santander, CACIB, HSBC, and others, granted several forbearances over the following years before ultimately deciding to end their participation in the project.

The outstanding obligations of the exiting lenders were purchased by Energía Eólica del Sur in connection with the new financing. In addition, original equity investors Macquarie Mexico Infrastructure Fund ("MMIF") and Dutch pension fund PGGM sold their interests in the project, allowing remaining project sponsors Mitsubishi Corporation, Mexico’s Fondo Nacional de Infraestructura ("FONADIN") and FONADIN’s privately managed Balam Fund to move forward with project development.

Banobras and EKF will provide debt financing for the relocated project, while Mexican development bank Nacional Financiera ("NAFIN") will provide VAT financing. The Danish turbine manufacturer Vestas Wind Systems will provide wind turbines for the project.

The energy produced by the project will be purchased pursuant to long-term PPAs with Mexican beer brewing firms Fomento Económico Mexicano, S.A.B. de C.V ("FEMSA"), Cuauhtémoc Moctezuma Holding México ("CMH") and Crown Americas LLC. When completed, the project will be among the largest wind farms in Latin America.

Partner Kate McCarthy led the main Clifford Chance team for the transaction along with Senior Associate Jessica Springsteen, assisted by Associates Alan Sakar, Laura Marriott and Greg Jehle. The exiting lenders were represented by a separate Clifford Chance team consisting of Partner Jennifer DeMarco and Senior Associate Hana Bae.

Banobras and EKF were represented in Mexico by a Galicia Abogados team consisting of Carlos de Maria y Campos, Eduardo García Travesi, María José Ortiz, Javier Arreola and Costanza García.