The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by Global Project Finance partner Dan Bartfeld, represented the Export-Import Bank of Korea (KEXIM), Sumitomo Mitsui Banking Corporation (SMBC) and Crédit Agricole Corporate & Investment Bank in the financing of the 433-MW Norte II combined cycle power plant located in Mexico’s northern state of Chihuahua. The debt to be provided to the consortium, made up of Korea Electric Power Corporation (KEPCO), Samsung C&T Corporation and Techint, S.A. de C.V., will exceed $300 million with three tranches of debt, with total project costs in excess of $400 million. The project is the largest Korean-sponsored power plant ever developed in Latin America and signifies the importance of Mexico (and Latin America) to Korean companies and KEXIM.

“The successful financing of this project reflects Korea’s increased interest and growing investment in Latin America’s energy industry,” commented Mr. Bartfeld. “With Milbank’s capabilities in power and energy transactions and experience in Latin America, the Firm is ideally positioned to participate in these deals.”

The consortium won state power company CFE’s tender to build, own and operate the plant pursuant to a 25-year power purchase agreement. Commercial operations at the plant are slated to begin in May 2013. WestLB acted as financial advisor to the consortium.

Additional Milbank attorneys involved in this transaction include New York-based Global Project Finance associates Sara Thompson, Ariella Feldman and Douglas Kim.