Milbank LLP advised the global coordinators and joint bookrunners in connection with the issuance by Fideicomiso de Inversión en Energía México (FIEMEX), a special purpose trust sponsored by Mexico’s National Infrastructure Fund (FONADIN) and managed by Mexico Infrastructure Partners (MIP), of US$1.49 billion 7.250% senior secured notes due 2041 in reliance on Rule 144A and Regulation S. The proceeds of the offering were used to repay a bridge loan made to FIEMEX to partially fund its US$6 billion acquisition from Spain’s Iberdrola of an operating portfolio of 12 combined-cycle plants and one wind farm in Mexico. This power generation portfolio is the second largest in Mexico, with a total installed capacity of 8.5 GW. The Milbank deal team was led by Corporate Finance and Securities partner Carlos Albarracín with support from special counsel Andres Osornio Ocaranza, associates Fernando Quezada and Enrique López Scherer and international attorneys Tomás Montes Miquel* and Manuel Etchevehere*. The core deal team had key support from Global Project, Energy and Infrastructure Finance partners Roland Estevez and Carolina Walther-Meade with associates Daniel Rios Zertuche, Sofia Duclaud and Sebastian Leon Nunez and international attorney Jeronimo Amenabar,* all of whom earlier this year advised a syndicate of commercial banks, including the initial purchasers, and Mexican development banks NAFIN and Bancomext in connection with the US$4.17 billion financing to support FIEMEX's acquisition from Iberdrola. Corporate Finance and Securities partner Carlos Albarracín said, “This is a groundbreaking deal for Mexico and Latin America that combines acquisition and project financing techniques in a transaction that was over 6 times oversubscribed by international investors. This is a testament to the ability of Milbank partners and associates across different groups to come together to execute a complex, high-stakes transaction for our clients. We are extremely proud to have represented the global coordinators and joint bookrunners in this landmark transaction for Mexico.”

*Not yet admitted to the bar