General Announcement::IENOVA EXECUTES AGREEMENTS WITH TRAFIGURA

Issuer & Securities

Issuer/ Manager
INFRAESTRUCTURA ENERGETICA NOVA, S.A.B. DE C.V.
Securities
INFRAESTRUS$540M4.875%N480114A - US456829AB67 - 8DTB
INFRAESTRUS$540M4.875%N480114R - USP56145AB40 - 8DUB
INFRAESTR US$300M3.75%N280114A - US456829AA84 - 8DWB
INFRAESTR US$300M3.75%N280114R - USP56145AA66 - 8DXB
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
29-Sep-2018 03:27:13
Status
New
Announcement Sub Title
IENOVA EXECUTES AGREEMENTS WITH TRAFIGURA
Announcement Reference
SG180929OTHR78GD
Submitted By (Co./ Ind. Name)
Rodrigo COrtina Cortina
Designation
Legal Corporate DIrector
Effective Date and Time of the event
28/09/2018 17:00:00
Description (Please provide a detailed description of the event in the box below)
IENOVA AND TRAFIGURA EXECUTE PURCHASE AND SALE AND JOINT VENTURE AGREEMENTS TO DEVELOP A MARINE TERMINAL FOR THE RECEIPT, STORAGE AND DELIVERY OF REFINED PRODUCTS IN MANZANILLO, COLIMA AS WELL AS A TERMINAL SERVICES AGREEMENT FOR 50% OF ITS INITIAL STORAGE CAPACITY

IEnova and Trafigura Mexico, S.A. de C.V. ( Trafigura ) enter into an agreement for 50% of the terminal s initial storage capacity.
IEnova acquires 51% of the project and assumes leadership of the development of the terminal.

Mexico City, Mexico, September 28, 2018 Infraestructura Energetica Nova, S.A.B. de C.V. ( IEnova ), through one of its subsidiaries, and Trafigura announce the execution of a long-term terminal services agreement for 740,000 barrels of storage capacity of a marine facility for the receipt, storage and delivery of refined products in Manzanillo, Colima. As part of the agreements, IEnova also acquired 51% of the equity of the company whose subsidiary owns certain permits and land where, subject to the issuance of the remaining permits and other conditions, the project will be built. Affiliates of Trafigura retained 49% of the equity of the project. Both companies entered into a Joint Venture Agreement governing the development, construction, and operation of the project.

IEnova will have control over all aspects of project implementation, including finalizing permits, securing customers for the additional capacity, and completing detailed engineering, procurement, construction, financing, operation and maintenance of the terminal. The project s estimated investment is approximately US$200 million dollars, and the company anticipates, subject to the timing of issuance of the remaining permits, the start of commercial operations at the end of 2020.

The project scope includes a marine terminal for the receipt, storage and delivery of refined products. The terminal will be capable of loading refined products onto rail and trucks, which will enable its customers to supply fuels to demand centers in the Manzanillo, Colima area as well as in Guadalajara, Jalisco, which is the second largest demand center in Mexico. It is estimated that the initial phase of the terminal will have a storage capacity of 1.48 million barrels with opportunities for expansion.

The Manzanillo terminal is IEnovas sixth refined products terminal in Mexico, which demonstrates its commitment to developing infrastructure in the country that enhances energy security and the reliability of refined product supply. This project also fits within IEnovas strategic plan of portfolio diversification that the company embarked on over the past few years.


Attachments

Evento Relevante - Terminal Trafigura Manzanillo 5 eng.pdf
Total size =277K