The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Project finance: Mexico capitalizes on power project track record

Biggest Korean investment in Mexican power sector; Further deals in the pipeline

Asian investment into Latin America continues apace after financing closed last month for a power-generation project in Mexico involving Korean institutions.

While Japanese and increasingly Chinese investment into the region has grabbed headlines, Korean interest in Latin America has been more limited. But that might be about to change.

Last August Korea Electric Power (Kepco) and Samsung, together with Argentina’s Techint, won the contract to build, own and operate the 433MW Norte II power plant in Mexico’s northern state of Chihuahua.

It’s for that project that financing has just closed, with the consortium signing a $325 million club loan with three banks. Export-Import Bank of Korea (Kexim) will provide $174 million through a direct loan. In addition, mandated lead arrangers Crédit Agricole and Sumitomo Mitsui Banking Corporation will supply an $86 million Kexim-guaranteed loan. The two banks will also provide a $65 million non-guaranteed loan. The debt’s tenor is for 21 years and 10 months with a two-and-a-half year grace period.

The size of the loan provided proved less than the $350 million initially provisioned after final costs were lower than expected. The debt will fund construction and repay an $85 million equity bridge provided by the sponsors in December.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree