Transactions

Mexico Power Group

Equity Capital Raise and Construction Project Financing of Mexico Power Group's La Bufa 1 Wind Farm provided by:

First Reserve, Sumitomo Mitsui Banking Corporation, Nacional Financiera S.N.C, Korea Development Bank, Banco Nacional de Comercio Exterior S.N.C., Volkswagen de Mexico

Mexico Power Group (“MPG”) successfully completed the equity capital raise and project financing of the 130 MW MPG La Bufa 1 Wind Farm in Zacatecas, Mexico.
MPG, a spin-off of Cannon Power Group (“Cannon”), based in Tijuana, Baja California, is an independent company whose directors have been leaders in
the renewable energy industry since its formation. The company’s focus is on the development, operations, and maintenance of wind and solar energy
projects. The MPG team has developed over 25 wind projects, installing approximately 5,500 MW worldwide.

The MPG La Bufa 1 Wind Farm has a 20-year landmark power purchase agreement with Volkswagen de México (“VW México”). When fully built, the wind farm will
supply over 60% of the power required by VW México’s plant in Puebla, one of the largest automotive assembly plants in the world, and will help this
company prevent the emission of over 140,000 tons of CO2 into the atmosphere annually.

Marathon led a comprehensive market search to find a well suited equity partner to MPG, around an investment structure framework which sought to enable
MPG to maintain control of its development pipeline, while monetizing its construction-ready projects. This process culminated in the selection of
First Reserve, the global private equity and infrastructure investment firm exclusively focused on energy, whose philosophy and approach to renewable
energy investing proved to be an excellent fit for all parties involved. First Reserve’s equity investment in La Bufa 1 will be the inaugural investment
into this long-term partnership.

Marathon has also acted as exclusive Financial Advisor to MPG in the Project Financing transaction. Sumitomo Mitsui Banking Corporation (“SMBC”) led a
consortium formed with Nacional Financiera S.N.C. (“NAFIN”), and Korea Development Bank (“KDB”) to provide the construction and term debt, while Banco
Nacional de Comercio Exterior S.N.C. (“Bancomext”) is providing the value-added tax (“VAT”) and subordinated letter of credit facilities.

Segments
Marathon's Role

Capital Raise

Client Countries

Mexico

Counter Party Countries

Germany, Japan, South Korea, Mexico

When

December 2015