Banco Sabadell Grants US$15 Million Financing to Balam

Banco Sabadell grants a US$15 million financing package to three subsidiaries of Balam, a private equity fund manager specializing in renewable energy in Mexico. The financing, advised by law firm Cuatrecasas, will help refinance existing debt and cover operating expenses for various solar photovoltaic projects across Chihuahua, San Luis Potosi, and Durango.

The credit facility was extended to Avant Energías Renovables I, Salsipuedes Solar, and Energía Limpia de La Laguna, all part of Balam’s portfolio. The deal includes standard guarantees typical of this type of financing.

Balam focuses exclusively on sustainable investments in Mexico, including solar, wind, and mini-hydroelectric generation projects, as well as cogeneration and energy efficiency initiatives. The Fund currently has an installed solar capacity of around 110MWp. The fund manager oversees capital commitments of about US$230 million, through vehicles such as Balam Fund I, L.P., and the BalamCK16 development capital certificate trust.

Banco Sabadell has also recently expanded its financial backing of Mexico’s distributed generation sector. The bank increased the credit line extended to Energía Real, a Riverstone portfolio company, to a maximum of MX$500 million. The financing will support the construction, development, and operation of distributed generation projects across the country. Cuatrecasas also advised on this transaction, which includes the standard guarantees for this type of operation.