Balam GP was selected by FONADIN, JBIC and BID to establish and to operate the first Green Fund in Mexico and enhance important renewable resources of a country with wide needs for investment in energy infrastructure.

In July 2013, as a result of a selection process organized by the Fondo Nacional de Infraestructuras de México to which 26 companies applied, BK Partners, together with The Rohatyn Group (TRG), launched Balam Fund I, investment vehicle in renewable energy and enegy efficiency in Mexico.In March 2016, BK Partners and TRG carried out a rights issue in the Mexican Stock Exchange of Balam CK16, through the issuance of a Certificado de Capital Desarrollo (CKD).

Target: creation of a leading investment platform in projects in renewable energy and energy efficiency in Mexico, through the acquisition, full equity or leveraged, of projects in their latest phases of development, construction or operation and active management of them with the objective of maximizing return and obtaining economies of scale.

Main advantages Balam:

  • Focus exclusively in renewable energy and energy efficiency in Mexico.
  • Solid and differentiating proposal of value: flexibility for the full equity, lack of risk of development and flexibility in structure of sale of energy, minimizing financial and operational risks.
  • Proven track record in the Investment and Asset Management of renewable assets worldwide.
  • Team which combines large financial, energy, construction and management of renewable assets experience.
  • Well-recognised investors.
The experience of the Manager Fund was recognized by winning the RFP for the First Green Fund in Mexico.
Balam is already provided with first-level partners.
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Energy transition represents a clear investment opportunity.
Team working on pipeline since 2012. More than 1GW being analyzed.
Team with extensive experience in the investment in renewable assets (>$2.5 bn) and in the manage of assets in operation (>1 Gw).
Favorable evolution in the regulatory framework: the energy reform will provide greater legal certainty.
Proven ability to identify projects with greater possibility of generation of value.
Proven ability of asset management. A global recognition technical advisor: Vector Cuatro.

The portfolio’s objective is to maximize profitability based on the expected returns by technology and diversify risk in accordance to the clear investment guideline.

Diversification

No more than 40% of the Fund can be invested in one project.

Proved technologies

Mainly solar wind technologies, biomass, mini-hydro and cogeneration. No more than 70% of the Fund will be invested in a particular technology.

No development risk

Projects “ready-to-build” defining specific “milestones” for type of project and technology. Capital commitment at “financial closure” of the transaction.

Solid counterparts

Developers with solid track record, aligning their compensation. No more than 40% of the Fund in a developer.

EPC providers / equipment with proven expertise and financial strength. Solid contracts with appropriate penalties and monitoring in situ (during the construction period).

Active participation

Stock control positions to manage the operation and exit of projects. Alternatively, relevant minority positions in order to obtain suitable protections.

Cash flows visibility

“Off-takers“ with high credit ratings. Solid contracts “PPA” (“Take or pay” price “minimum” exit penalties, etc.).

Flexibility to invest in projects selling the energy to market initially.

Full Equity visibility

Unleveraged projects are more resistant, minimizing the impact in returns of potential changes in prices / other hypotheses. They give the investor a significant yield from the 1st year of operation.

Main assets

Camargo Project

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Project Snapshot
  • Ground-mounted solar PV facility, designed with a one-axis tracker system, with a nominal installed capacity of 30.0 MWn and potential peak installed capacity of 34-36 MWp (ca. 2,350 kWh/m2).
  • Located in Chihuahua Sate.
  • Small Producer power generation permit.
  • Expected to initially sell energy to the wholesale energy market.
  • Ready-to-build status reached in November 2015. Interconnection agreement signed.
Developer
  • Avant Solar. Spanish solar PV group founded in 2005 focused on the development, engineering, construction and maintenance of solar PV and cogeneration installations. Avant Solar has offices in Madrid, Mexico and Japan.
  • Extensive experience in Mexico with permanent presence since 2012.
  • Solar PV projects totaling 120 MW under advanced stages of development in Chihuahua and Coahuila.
  • Two projects have reached RTB status.
Location
  • Located 10 kilometers eastern from Camargo (Chihuahua Sate). The site is approximately 70 kilometers south of distance from Delicias (Chihuahua State) and 170 kilometers south of distance from the Chihuahua.
  • 1,274 meters above sea level.
  • 90 hectares of private land (20-year lease agreement + 10-year extension in the same terms and conditions and a call option).
  • Interconnected to CFE Camargo substation (115 kV) via a transmission line of approximately 0.7 kilometers.
Status

In operation since 2017.

Eólica del Sur Project

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Project Snapshot
  • Wind grid connection plant with an installed capacity of 400 MW.
  • Located in the State of Oaxaca.
  • Non-recoursedeb already structured.
  • Sale of energy through PPA.
  • Ready-to-build status reached in November 2015. Study of installations received.
Location
  • Located on the Isthmus of Tehuantepec.
  • 2 plots totaling 4,378 hectares of land owned by private (leases to 30 years + 25 years extension).
  • Interconnection Ixtepec CFE substation through a transmission line of approximately 10 kilometers.
Status
  • In exclusivity period. Closing of the transaction expected in 2017.
  • Estimated operating date at the end of 2018.

For more information visit the Balam Fund website

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