Iberdrola will reinvest the US$6 billion it obtained from selling its assets to the Mexican government in renewable energy projects in the country. According to Katya Somohano, Director of Planning and Sustainability, Iberdrola, the company has a portfolio of prospects, although final decisions have not been made yet.
According to Energía a Debate, Somohano stated that the decision will depend on locations where there is a need for investment and where the necessary permits can be granted to the company. During her participation at the XIII Joint Energy Associations Congress, Somohano emphasized the importance of stable regulation and legal certainty for investors. She also mentioned that to accelerate investments in the country, transmission infrastructure must be further developed. She explained that it is crucial to have greater flexibility for private sector participation in the development of this infrastructure. "There are very well-designed mechanisms on paper that are there to enable private resources to accompany investment, which, unfortunately, have not been explored," she said.
Despite the challenges, the company maintains its interest in investing in Mexico. Iberdrola retained ownership of 15 plants to ensure continued service to its private customers, while shifting its focus toward the expansion of renewable energy projects in Mexico. "We have a renewable portfolio with approximately 6,000MW of installed capacity to explore new opportunities and promote growth in the country," shared Iberdrola.
MIP Prepares to Pay Iberdrola
In June, Iberdrola and the Mexican government finalized the deal announced in April to reduce the company’s presence in the country through the sale of part of its assets.
Mexican Infrastructure Partners (MIP) recently launched a US$2.42 billion issuance on the Mexican Stock Exchange using Capital Development Certificates (CKD). This instrument is designed to contribute to the payment of over US$6 billion to Iberdrola for the acquisition of 12 gas plants and a wind farm. The CKDs, combined with capital from the National Infrastructure Fund (FONADIN), mark the initial stage of the repayment process to Iberdrola, reports El Economista.
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