Global Infrastructure Partners has provided a US$325m secured term loan to Mexico-based power producer Saavi Energia through its GIP Spectrum Fund.
(Press Release) Global Infrastructure Partners (GIP), a leading global, independent infrastructure investor, announced today that GIP Spectrum Fund, L.P, along with its affiliates and coinvestors, has closed on a $325 million Secured Term Loan for Saavi Energia (“Saavi”), the fourth largest independent power producer and the largest privately held stand-alone power generator in Mexico.
With this transaction, GIP Credit has committed approximately $550 million in Latin America through four investments over the last two years. GIP Spectrum provides customized credit financings for infrastructure issuers in GIP’s core sectors of midstream energy, power, renewables and transport, while leveraging GIP’s significant operating expertise.
With over 20 years of experience in the Mexican power market, Saavi’s 2.2 net GW portfolio consists of 10 energy facilities, including 6 CCGTs, 1 wind farm, 3 compression stations and 65 km of associated natural gas pipelines. Saavi is 100% owned by Actis LLP.
One of the largest recent holding company term loans in the Latin America infrastructure sector for a private sponsor, the GIP Credit investment is supported by a large portfolio of investment grade power contracts with high quality counterparties. The assets are strategically located near high demand industrial load centers and supported by an attractive Mexican power demand macro backdrop as well as positive demographic trends. Saavi also has a best in class management team and an outstanding operational track record.
“We are very pleased to have entered into this strategic transaction with Saavi and its Sponsor, Actis,” said Jennifer Powers, GIP Partner and Chair of GIP Credit. “As an industry leading power producer with a robust portfolio of assets and a top-tier management team, Saavi continually provides reliable services essential to the Mexican power markets. We look forward to working with and supporting the growth of such an impactful business in the future. This investment exemplifies GIP Spectrum’s ability to provide unique credit solutions for high quality, essential infrastructure projects, and be a reliable and flexible partner.”
“We are thrilled to be joined in our commitment to support the region with an exceptional partner that was able to deliver a bespoke, creative financing solution to meet our needs,” said Mauricio del Valle, Saavi’s CFO. “This transaction highlights the strength and diversity of Saavi’s portfolio. We are enthused about the opportunity this facilitates to create value and to solidify Saavi’s leadership position in our marketplace.”
About Global Infrastructure Partners
Global Infrastructure Partners (“GIP”) is an independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. GIP targets investments in the energy, transport and water/waste sectors in both OECD and select emerging market countries. GIP’s teams are located in 10 offices: London, New York, Stamford (Connecticut), Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. GIP’s credit platform (“GIP Credit”) provides financing solutions and makes debt and non-common equity investments in infrastructure assets and companies through several funds including GIP Spectrum and GIP Capital Solutions (“CAPS”). For more information, visit www.global-infra.com.