Good, clean fund

17 October 2016 By Sara Silver

Some $50 trln globally is needed for clean-energy projects to meet the Paris accord’s goals. Developing countries often have a harder time than the West finding funding. But recent successful deals in Mexico, fueled in part by investors’ hunt for yield, suggest that’s changing.

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The Mexican unit of U.S. Sempra Energy, Infraestructura Energetica Nova , said on Oct. 14 that it had raised 30.4 billion pesos ($1.6 billion) in a public stock offering to fund recent acquisitions. IEnova bought Mexico's largest wind farm in September for $375 million and assumed $477 million in long-term debt financing. It also paid $1.1 billion to buy out its joint venture partner, state-owned Petroleos Mexicanos, from its half of pipeline operator Gasoductos de Chihuahua.

Mexico City's airport sold $2 billion in green bonds on Sept. 22 to help finance a new airport that is carbon-neutral and runs on renewable energy. The debt issue, split evenly between 10-year and 30-year bonds, is backed by passenger charges at the existing airport and at the new airport when it begins operating, which is expected in late 2020. The 10-year bonds pay annual interest of 4.25 percent and the 30-year bonds 5.5 percent.

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