JBIC and Mitsubishi UFJ to Fund Mitsui’s Mexican Projects

29 September 2010 (Last Updated September 29th, 2010 18:30)

The Japan Bank for International Cooperation (JBIC) and three of the country's largest banks will loan $750m for a $1.2bn acquisition of power-plant and natural-gas pipeline assets in Mexico by Mitsui and Tokyo Gas's joint venture MT Falcon. The loan, to be offered by Mitsubishi UFJ Fin

The Japan Bank for International Cooperation (JBIC) and three of the country's largest banks will loan $750m for a $1.2bn acquisition of power-plant and natural-gas pipeline assets in Mexico by Mitsui and Tokyo Gas's joint venture MT Falcon.

The loan, to be offered by Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group is part of JBIC's plans to expand financing for overseas power and water supply, according to Bloomberg.

MT Falcon, 70% owned by Mitsui, completed the deal in June 2010 to buy five power plants with a combined capacity of 2,233MW, and a 54km gas pipeline from Gas Natural SDG.

Power generated from the five plants is sold to Mexico's state-owned utility, Comision Federal de Electricidad under the 25-year sales contracts.