NEOEN SA (EPA:NEOEN) - Neoen signs financing agreement for its El Llano project, a 375MWp photovoltaic farm in the state of Aguascalientes in Mexico

Transparency directive : regulatory news

19/03/2019 18:00

MEDIA RELEASE

Paris & Mexico, 19 March 2019

Neoen signs financing agreement for its El Llano project, a 375MWp photovoltaic
farm in the state of Aguascalientes in Mexico

* The El Llano plant was entirely developed by Neoen and is the largest in the
  company's asset portfolio;
* El Llano was one of the winners of the 3rd Mexican public renewable energy
  auction in November 2017; With a contract to sell the electricity produced at
  less than $19/MWh, it is one of the most competitive solar projects in the
  world, contributing to the successful performance and independence of the
  Mexican electricity sector;
* El Llano will deliver significant economic and social benefits to the local
  community;
* Bancomext, Natixis and Société Générale will provide the project's senior
  debt;
* With excellent natural resources and fast-growing demand, Mexico is a market
  of considerable potential for renewable energy, which offers the most
  competitive energy sources.

Neoen (ISIN Code: FR0011675362, Ticker: NEOEN), France's leading independent
producer of renewable energy, and one of the fastest-growing worldwide, has
announced the signature of financing for the El Llano project, a 375MWp solar
project in the state of Aguascalientes in Mexico. The power plant is
wholly-owned by Neoen.

Located 20km east of the town of Aguascalientes, state of Aguascalientes, in
the center of Mexico, El Llano will cover 800 hectares of flat land. It will be
connected directly to Comisión Federal de Electricidad's (CFE) high-voltage
network. As one of the winners of the 3rd government renewable energy auction
in November 2017, El Llano will sell around 70% of the electricity produced at
a fixed, indexed price of USD18.93/MWh (price corresponding to electricity plus
green energy certificates) to a consortium consisting of CFE SSB (a public
body), Iberdrola Clientes (a utility company) and Menkent (a subsidiary of
cement-maker Cemex). The purchasing contract will last 15 years for electricity
and 20 years for clean energy certificates from its activation date at the end
of the second quarter of 2020. The remainder of the electricity produced will
be sold directly on the Mexican electricity market.

Sinohydro, a subsidiary of PowerChina, and Novamper, a subsidiary of Prodiel,
will build the project under a turnkey contract. El Llano will use more than a
million monocrystalline modules fitted to Soltec trackers to be supplied in two
equal lots by Longi and Hanwha Q Cells. At its peak, construction of the
project will employ up to 820 people, the vast majority of whom will come from
the Aguascalientes region, thus stimulating and diversifying the local economy.
Operation and maintenance of the project will be managed by Sinohydro and
Novamper once the plant comes into service.

Bancomext, Natixis and Société Générale, as joint mandated lead arrangers,
lenders, and bookrunners will provide the project's senior debt for total
investment, excluding financing costs of $280 million.

Astris Finance, Norton Rose Fullbright, EOS, PwC, Deloitte, Pöyry, Beecher
Carlson and Ester advised the project company on behalf of Neoen. Ritch,
Mueller, SC, Shearman & Sterling, UL, Natura, KPMG and Mandy McNeil
International advised the lenders.

Lionel Bony, Managing Director of Neoen in Mexico, commented: "Our El Llano
power plant enjoys excellent levels of sunshine and very good conditions for
grid connection. The size of the farm and the structure of the Mexican
electricity market make this an exceptional project from every angle. It will
employ up to 820 people at the peak of the construction process, deliver
significant benefits for local communities and increase the competitiveness and
independence of the Mexican electricity sector. The project will provide the
country's cheapest solar electricity and has been designed to meet the highest
environmental, employment and safety standards. We are very proud of this
project and would like to offer our warmest thanks to the staff at Neoen and to
all our partners, in particular the municipality of El Llano and the
authorities of Aguascalientes, who have demonstrated their unstinting support
throughout the project's development."

Xavier Barbaro, Neoen's Chairman and Chief Executive Officer, concluded: "Its
size, the price of the electricity it will supply and its sophisticated
structuring make El Llano an exemplary project for Neoen. It reflects our very
strong internal expertise in developing robust, local projects on a very large
scale, which allows us to compete successfully in the world's most competitive
tender processes, whether public or private, be they in Mexico or any of the
other countries in which we are expanding. I would add my thanks to all our
partners who helped us make this project such a success."

About Neoen

Founded in 2008, Neoen is France's leading and one of the world's most dynamic
independent producers (IPP) of renewable energy. With a current capacity of
more than 2 GW already in operation or under construction, and a further 1 GW
of projects formally awarded and secured, Neoen has doubled its size in over
just 18 months. Neoen is active in France, Australia, Mexico, El Salvador,
Argentina, Zambia, Jamaica, Portugal, and Finland and has assets in more than
15 countries. It operates Europe's most powerful solar PV farm (300 MW in
Cestas, France) and the world's largest lithium-ion power reserve in Hornsdale,
Australia (100 MW/129 MWh storage capacity). At the end of 2017, Neoen won one
of the largest (375 MW) and the most competitive solar project in Mexico. Neoen
is targeting 5 GW capacity in operation and under construction by 2021.
Neoen (ISIN Code: FR0011675362, ticker: NEOEN) is listed since October 2018 on
the Compartiment A of the regulated market of Euronext Paris.

For more information: www.neoen.com

Investors
Neoen

Axelle Vuillermet
T: +33 7 77 68 62 34
axelle.vuillermet@neoen.com

Press
Havas Paris

Camille Houel
T: +33 6 44 34 40 81
camille.houel@havas.com

Individual Shareholders
NewCap.

Mathilde Bohin
T: +33 1 44 71 94 95
mbohin@newcap.fr

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NEOEN SA (EPA:NEOEN) - Neoen signs financing agreement for its El Llano project, a 375MWp photovoltaic farm in the state of Aguascalientes in Mexico

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