CONTOURGLOBAL SUCCESSFULLY COMPLETES US$525 MILLION REFINANCING OF COGENERATION PORTFOLIO IN MEXICO

ContourGlobal has announced the successful refinancing of a 518 MW portfolio of highly efficient natural gas-fired, CHP (combined heat and power) cogeneration plants located in Mexico. The refinancing of the portfolio's senior secured debt, for a total of US$525 million, was completed with the participation of Allianz Capital Partners (ACP) as the sole institutional investor.

The transaction, completed on August 28th, involved the issuance of US$252 million in private placement notes invested by ACP, alongside a combined loan of US$273 million by The Bank of Nova Scotia and Scotiabank Inverlat S.A. (Scotiabank Mexico), BNP Paribas (BNPP) and Credit Agricole - Corporate and Investment Banking (CA-CIB). The strong interest by investors and lenders reflects high confidence in ContourGlobal portfolio's robust operational track record and its strategic importance in Mexico's energy landscape.

This refinancing is a key component of ContourGlobal's broader financial strategy, aligned with its ambitious growth plans focused on the organic expansion of its renewable power portfolio and on a sustainable transition of its thermal fleet. As a KKR company since December 2022, ContourGlobal continues to leverage its global capabilities, managing 126 power plants across 18 countries with a total installed capacity of approximately 5.6 GW.

A valuable contribution to Mexico's energy security

The refinanced portfolio, consisting of two cogeneration plants in Cosoleacaque (Veracruz) and Altamira (Tamaulipas), plays a vital role in stabilizing the Mexican power grid by delivering reliable and lower-emissions baseload power. With nearly 8 years of operational history on average, these assets contribute significantly to Mexico's energy transition and economic growth, offering enhanced energy efficiency and reduced CO2 emissions compared to traditional thermal plants. ContourGlobal's cogeneration technology uses 32% less fuel and produces up to 30% less CO2 emissions for the same energy output compared to conventional thermal power generation.

The cogeneration plants are strategically located along the Gulf of Mexico, a region that serves as a key energy and industrial hub for the country. The plants cater to the energy demands of large industrial, commercial, and manufacturing customers, benefiting from Mexico's extensive natural gas pipeline infrastructure.