Cox Energy Receives US$31.45 million To Support Growth Plans

In June 2022, the Spanish firm Cox Energy received a €30 million (US$31.45 million) credit facility from Barclays Bank Ireland to further expand its solar-based renewable energy portfolio in Latin America.

Cox Energy is a Spanish company focused on renewable energy generation through PV solar power projects. It has a presence in Europe and Latin America, mainly in Mexico, Chile, Colombia and Central America. Founded in 2015, Cox Energy América, the company’s subsidiary in this region, became the first solar company to be listed on a Latin American stock exchange in 2021.

The company revealed that the investment will be used to develop short- and long-term projects, as well as to capitalize on further investment opportunities. Cox Energy América is active across the entire solar value chain and currently holds a pipeline project portfolio of 2.2GW across all development stages.

According to its website, the company has a strong commitment to ESG strategies which are mainly reflected through four main goals: promoting sustainable communities, providing environmentally-friendly solutions, reducing inequality at the workplace and ensuring the economic development for the communities that they work in.

"This transaction reflects the confidence in our expansion and growth plan, and will make it possible to continue with the execution of our proposed strategies. With this funding, the company will continue to strengthen its liquidity levels to meet challenges and maximize investment opportunities and returns," commented Jose Antonio Hurtado de Mendoza, CEO, Cox Energy.

In November 2021, the company announced that it would initiate the process of dual listing its representative shares on the BME Growth stock exchange in Spain. At the time, Hurtado de Mendoza said that he was confident in that this next step would increase the visibility and marketability of the stock, since the company “has the talent, structure and tools necessary to be able to operate actively in both the Mexican and Spanish stock markets,” he said on a press release.

Recently, however, the company’s stocks have been underperforming on the BIVA stock exchange. Bloomberg reports that Cox has accumulated losses of 20.72 percent, decreasing the value of each unit from US$1.56 to US$1.24. As of now, the company’s market capitalization value stands at US$202,101. Nevertheless, analysts monitoring the company’s performance at the BIVA expect unit prices to rise to US$2.63 by the end of 2022.

Their assessment was based on the company’s extension of the deadline for the subscription of shares, which will be open for acquisition until the end of 2022. They also expect that, come the end of the first semester of 2022, Cox Energy can finalize the dual listing process on BME Growth in Spain. Jorge Plácido, Analysis Manager, Apalache Análisis, commented on the European market’s growing interest in the renewable energy sector and suggested that Cox’s stock performance should benefit from that market environment.

So far, the company managed to increase its 1Q22 revenues to US$3.94 million, which amounts to a growth of 230 percent in comparison to 2021.