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Blackstone’s Fisterra Energy to Sell Ventika Facilities to IEnova for US$825m

5 September 2016

(Press Release) IEnova has entered into an agreement to acquire 100% of the equity interests in Mexico’s largest wind farm, Ventika, which belongs to Fisterra Energy, a company owned by funds managed by Blackstone, for an estimated US$825m.

• IEnova has agreed to acquire 100% of the equity interests in the Ventika wind generation facility

• Ventika is the largest wind farm in Mexico and one of the largest in Latin America

Mexico City, September 5th, 2016 –Infraestructura Energética Nova, S.A.B. de C.V. “IEnova”, announced today that it has entered, through one of its subsidiaries, into a Purchase and Sale Agreement “PSA” for 100% of the equity interests in the Ventika I and Ventika II wind generation facilities, jointly “Ventika”, which is majority-owned by Blackstone Energy Partners and affiliated private equity funds and Fisterra Energy, a company owned by funds managed by Blackstone (NYSE: BX), along with certain minority shareholders.

“This transaction will enhance IEnova’s renewables portfolio”, said Carlos Ruiz Sacristán, Chairman and CEO of IEnova. “It is also consistent with IEnova’s strategic plan to focus on short and medium-term growth and reflects IEnova’s commitment to exercise investment discipline by investing in assets which have long-term, US dollar-denominated contracts with creditworthy counterparties. We anticipate that, upon closing, this transaction will contribute significantly and immediately to IEnova´s earnings”.

Ventika is a 252 MW wind generation facility powered by 84 turbines, making it the largest wind farm in Mexico and one of the largest wind farms in Latin America. The facility is comprised of two adjacent wind farms located in the General Bravo municipality in the state of Nuevo Leon, and was jointly developed by Fisterra Energy, and Cemex, a global building materials company with presence in more than 50 countries. Construction was completed in December 2015 and commercial operations commenced in April 2016. Cemex will remain as asset manager of the project.

The purchase price for this transaction is estimated to be 852 million U.S. dollars, comprised of an estimated cash payment at closing of 375 million U.S. dollars, plus the assumption of outstanding debt of approximately 477 million U.S. dollars. Ventika has long-term project financing in place, granted by commercial and development banks. The purchase price is also subject to customary post-closing adjustments.

Ventika’s electric generation and capacity are contracted through long-term, U.S. dollar denominated, Power Purchase Agreements “PPAs” with non-government, high credit rating offtakers.

“We are extremely proud of Blackstone’s involvement, alongside Fisterra and our partners, in developing and constructing Mexico’s largest wind farm in support of Mexico’s renewable energy goals,” said Sean Klimczak, Senior Managing Director, Blackstone. “This transformative project, which has helped reduce Mexico’s CO2 emissions and reliance on oil-fired generation, is emblematic of the types of projects we endeavor to develop around the world.”

US-DOCS70784614.3 “It has been a privilege to co-develop and to construct such a marquee Mexican renewable project with Cemex, a world class and experienced partner,” said Pedro Barriuso, Fisterra’s Chairman and Chief Executive Officer. “We look forward to continuing to be active in the Mexican power generation sector as the country continues to support private investment through its ongoing energy reform.”

The transaction is expected to close in the fourth quarter of 2016 and is subject to the satisfaction of customary closing conditions, including the receipt of required regulatory and corporate approvals. These required approvals include those from IEnova’s shareholders and Mexico’s Federal Antitrust Commission (COFECE).