Milbank LLP advised Valia Energía, one of the largest private energy generation platforms in Mexico, in connection with a $530 million bond financing and related working capital facility by Buffalo Energy Mexico Holdings, S.A. de C.V., Buffalo Energy Infrastructure, S.A. de C.V. and Buffalo Energy, S.A. de C.V., as co-issuers. This innovative portfolio financing transaction will contribute to expanding Valia Energía’s significant footprint in the Mexican energy market and consolidate its position as one of the top 10 independent power generators in Latin America in terms of total installed capacity.
Valia Energía, a portfolio company of global private equity fund manager Actis, has a total commercial capacity of 3.2 GW distributed among seven gas-fired power generation plants.
“As the first project bond in Mexico since 2020 and the first offering by a Mexican first-time issuer since 2021, this financing is not just significant for the company, but the broader energy market in Mexico,” said Marcelo Mottesi, chair of Milbank’s Corporate Finance and Securities practice and co-head of the firm’s Latin America Group. “We are pleased to have advised Valia Energía on this innovative financing which will further expand the company’s already significant reach in the region,” added Global Project, Energy and Infrastructure Finance partner Roland Estevez.
Mr. Mottesi and Mr. Estevez led the Milbank teams advising Valia Energía on the financing. The Milbank team advising on the bonds was led by Mr. Mottesi and included Corporate Finance and Securities special counsel Andres Osornio Ocaranza, associates Wilson Carneiro and Justin Hill. The Milbank team advising on the loan was led by Mr. Estevez and included Global Project, Energy and Infrastructure Finance associates Natalia Rodriguez-Pastrana, Louise Toledo Farias, and Sol Avalos and law clerk Rafael Bresciani.*
*Not yet admitted to practice.
