First Competitively Bid Power Project – 20-year IFC financing in Mexico

Delphos was a co-financial advisor with Sanwa Bank to a consortium of The AES Corporation, Nichimen Corporation, and Group Hermes, which won a contract to build a 484 MW combined-cycle gas-fired power plant on a BOO basis in Mexico. Project costs totaled $231 million. The project set a benchmark in the power sector reform program in the country. The output of the plant is being sold under a 25-year power purchase agreement with CFE, the national utility. Delphos and Sanwa Bank structured and arranged a senior debt facility of $173 million from IFC and JBIC, under its Overseas Investment Credit (“OIC”) program. While IFC directly provided a portion of the funds, most of the senior debt was successfully syndicated to five commercial banks. The IFC syndicated loan and the JBIC OIC loan had grace periods of 3 years for construction and start-up, followed by a repayment period of 13 years. The IFC portion is a 20-year facility and one of the longest tenors provided by the agency. The repayment of the IFC A loan is tailored to accommodate variations in payments under the PPA. Financial close took place in the second quarter of 1998.



  • Renewables & Power

Client Name

The AES Corporation, Nichimen Corporation, and Group Hermes

Services Provided

  • Capital Raising


  • Latin America & the Caribbean


  • Mexico