The resources available from the National Infrastructure Fund (Fonadin) are insufficient to finance the acquisition of Iberdrola’s 13 power generating plants, valued at close to 6,000 million dollars, so other financing alternatives will be required to complete the transaction. , among them, resorting to the Stock Market or seeking credits among private investors.
Specialists commented that Fonadin barely has half of the resources that the operation implies, since it reported around 57,000 million pesos in December 2022 (about 3,134 million dollars with the exchange rate of the market closing of this Tuesday, 11 of April).
Last week it was announced that Mexico Infrastructure Partners (MIP), a manager of infrastructure and energy assets in Mexico, will acquire power generation plants from Iberdrola and Fonadin will provide financing to carry out the operation.
“Fonadin has close to 3,000 million dollars and most likely it will not use all those resources to carry out this operation. The rest has to be put up by MIP, which can go on the market to contract debt to complete the approximately 6,000 million dollars of the purchase. But it is an uncertainty because the instrument they would be using is not known”, considered Erick Salas, vice president of Business Development for Mexico and Central America at Rystad Energy.
Víctor Gómez, professor of Economics at the Autonomous Technological Institute of Mexico (ITAM), commented that Fonadin can grant financing with its own resources, but also with the issuance of debt via the National Bank of Public Works and Services (Banobras) or use the different financial assets in your favor to increase your liquidity and be able to fund the operation.
“The options you have are very wide and since we do not have more information, the key question from a fiscal point of view is what financing strategy is Fonadin using to grant MIP sufficient resources to purchase the assets?” questioned the professor.
For Carlos Ramírez, co-director of Integralia, it is difficult for the federal government to leave Fonadin without funds because there are some obligations or projects that are likely to be underway for which these resources will be required, so they may opt for other viable mechanisms. of funding.
He reiterated that although the participation of the public sector to fund this operation is essential, the role of MIP is also relevant to seek resources from other sources of financing, such as the public market.
The amount of resources is not impossible to obtain, either with private or public resources through raising capital in the market, or through Banobras (with the issuance of debt). There are options between private banks and the role of the MIP also enters here,” Ramírez pointed out.
active issuer
The manager said that for reasons of time, financing via private banks is the one that is most within reach of this operation, since structuring a capital issue, either with Cerpis, CKD or Fibras E, takes months and requires authorizations. corresponding.
“MIP can raise private money, but the government can also give it a boost through Nafin or Banobras, but it’s all mere speculation… To sign a letter of intent with these characteristics, the potential investors are clearly outlined,” he stressed. .
Mexico Infrastructure Partners has done this in the past. It has been an active issuer of capital on the Mexican Stock Exchange (BMV) since 2014, when it placed its first Development Capital Certificate (CKD) and has made four issues until 2020.
In addition, it has raised resources from the investing public with two offers of Investment Project Certificates (Cerpis), as well as two Fibras E -instruments focused on investments in energy and infrastructure-. The last one was issued in March of this year.
The resources obtained with these figures have been used to finance highway, water and social infrastructure projects (prisons), among others.
Regarding a bond placement in the public market, Erick Salas said that it can be attractive if the issuer is a government agency because it would have the backing of the government, although it would be a burden on the treasury.
Regarding the role of the CFE, Gonzalo Monroy, general director of the GMEC consultancy, said that although the electric power generation plants will not be owned by him, he will assume responsibility for the costs of their operation, maintenance, and modernization, which can “deplete” part of its resources.
He stressed that it is likely that a structure will be established for MIP to pay CFE a fee for the operation, but until now it is unknown how much the remuneration will amount to.
“The efficiency in the operation of the plants by the CFE is the guarantee of payment,” stressed the Vice President of Business Development for Mexico and Central America of Rystad Energy.
Finally, the specialists agreed that the acquisition of the plants should be profitable so that it has public and private investment.
Fonadin support
What happened?
87% of the installed capacity in the agreement operates in Mexico under the figure of PIE
The Spanish Iberdrola signed, on April 4, an agreement with Mexico Infrastructure Partners (MIP), an energy and infrastructure asset manager, to sell it 8,539 megawatts (MW) of combined cycle installed capacity and 103 MW of wind power in the country, in an operation estimated at close to 6,000 million dollars.
87% of the installed capacity in the agreement operates in Mexico under the figure of Independent Power Producer (PIE). Under this scheme they sell their energy to the state Federal Electricity Commission (CFE).
Specifically, they will be gas combined cycles, which operate under the regime of Independent Power Producers contracted with the CFE in Monterrey I and II, Altamira III and IV, Altamira V, Escobedo, La Laguna, Tamazunchale I, Baja California, Topolobampo II and Topolobampo III, together with the La Venta III wind farm, which account for 87% of the total installed capacity to be divested, and the private gas combined cycle plants of Monterrey III and IV, Tamazunchale II and Enertek.
The transaction is subject to the agreement and the signing of the definitive contracts by the parties, as well as the obtaining of the necessary regulatory approvals and the fulfillment of certain usual conditions in this type of operation, he clarified.
The operation has the financial support of the National Infrastructure Fund of Mexico (Fonadin) and other public financial entities linked to the government of Mexico. (With agency information)
judith.santiago@eleconomista.mx