Emerging market-investor Actis has invested $250m into Mexican energy platform Zuma Energía.
The new vehicle which will be used to target projects providing at least 500MW of installed electricity generation capacity.
Zuma said it will leverage Actis’s expertise in the power sector, especially in project finance, construction and operations, in the bid to become a leading independent power producer in Mexico.
The deal represents Actis’s fourth investment in a power generation platform in Latin America, following recent investments in Brazil, Chile and Central America.
The platform has already been tapped for the acquisition of PE Ingenio, a 50 MW wind farm located in the state of Oaxaca.
PE Ingenio will be built by Acciona Energía who will also supply its 33 wind turbines. The company will receive debt finance from Bancomext and will have hydro projects company Comexhidro as a local partner with a 5 per cent stake.
Once in operation the wind farm is expected to produce enough clean energy to power over 125,000 Mexican households, reducing CO2 emissions from conventional generation by over 200,000 tons.
Actis co-head of energy Michael Till said, “Supported by the recent reform agenda in the energy sector, Mexico has compelling fundamentals for investing in power generation, including superior natural resources, an evolving and supportive regulatory framework and a deep project finance capacity.
“Drawing on our deep understanding of the Latin American energy sector we are looking forward to building one of Mexico’s leading suppliers of competitive power.”
Actis exited most of its stake in South African financial services company Alexander Forbes via an IPO in July this year.
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