Macquarie Capital’s Sale of its minority stake in Norte III


Milbank, Tweed, Hadley & McCloy and González Calvillo advised on the deal

Macquarie Capital, the corporate advisory, capital markets and principal investing arm of Macquarie Group (“Macquarie”), executed the sale to an entity controlled by affiliates of InfraRed Infrastructure Fund V (“InfraRed”) and Invex Infraestructura (“Invex”) of a 45.5% equity interest in a 907 MW combined cycle power generation facility, commonly referred to as “Norte III,” currently under construction in Ciudad Juárez, Mexico. As a result of the transaction, InfraRed and Invex acquired a 35.5% and 10.0% equity interest, respectively, in Norte III.

Norte III will benefit from availability-based revenues paid by government-owned Comisión Federal de Electricidad (CFE) under a 25-year, USD-denominated PPA. The construction of the Norte III project is being carried out by Techint Engineering & Construction (“Techint”), an Argentinian engineering, procurement and construction (EPC) services company. Macquarie and Techint will remain co-shareholders of Norte III.

The development of Norte III will help meet the growing need for electricity in the region. Upon completion, Norte III will be one of the largest combined-cycle power plants in Mexico and provide electricity to more than 500,000 homes.

The Milbank team was led by Corporate partner John Franchini (Picture) and Project, Energy & Infrastructure partners Dan Bartfeld and Roland Estevez, as well as corporate and projects associates Daniel Valenza, Carolyn Matos Montes and Samantha Kwartler.

In Mexico, González Calvillo, S.C. advised Macquarie Capital with Jorge Cervantes, Diego Hernández Schmidt-Tophoff, Daniel Guaida and Víctor Nakakawa.

Involved fees earner: Jorge Cervantes – Gonzalez Calvillo Abogados; Victor José Nakakawa Trejo – Gonzalez Calvillo Abogados; Diego Hernández Schmidt-Tophoff – Gonzalez Calvillo Abogados; Daniel Guaida Azar – Gonzalez Calvillo Abogados; John Franchini – Milbank; Daniel Valenza – Milbank; Samantha Kwartler – Milbank; Dan Bartfeld – Milbank; Roland Estevez – Milbank; Carolyn Matos Montes – Milbank;

Law Firms: Gonzalez Calvillo Abogados; Milbank;

Clients: Macquarie Capital;

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Author: Ambrogio Visconti