Mexico Pacific Engages MUFG Bank to Lead Project Financing

HOUSTON, April 16, 2020 /PRNewswire/ -- Mexico Pacific Limited LLC (MPL), a North American LNG export project based on the West Coast of Mexico, announced today that it has engaged Mitsubishi UFJ Financial Group (MUFG) as financial advisor, marking another step toward final investment decision (FID) of the project.

Headquartered in Japan, MUFG is one of the world's largest publicly traded financial institutions and is the fifth largest bank by assets, with approximately $2.9 trillion as of December 31, 2019. In the Project Finance International Loan League Tables for 2019, MUFG ranked as Top Global Initial Mandated Lead Arranger (MLA) for the eighth consecutive year—and #1 for project finance loans in the Americas.

MPL is a leading West Coast LNG export project in North America, offering customers in Asia a lower landed cost of LNG, geographic diversity and a de-risked shipping route. The combination of the shorter shipping distance to Asia from its West Coast location and its access to low-cost U.S. natural gas allows the project to deliver some of the lowest landed cost LNG into Asia.

"MPL is pleased to be working with MUFG and we believe they are well positioned to assist MPL due to their longstanding market-leading position in project finance, recent and relevant experience structuring and leading project financing transactions in the Americas, extensive knowledge of project financing in Mexico, and unparalleled expertise in the global LNG market," said Douglas Shanda, President and Chief Executive Officer of MPL. "With its breadth of knowledge and experience and strong relationships with leading lenders and investors globally, MUFG's appointment represents another important milestone in MPL's aggressive advancement to FID."

"The MUFG team looks forward to helping MPL commercialize and finance its 12 million-tonnes-per-annum Pacific Coast LNG terminal," said Erik Codrington, Managing Director and Head of Structured Finance in the Americas at MUFG. "We believe MPL is a uniquely advantaged project with direct Pacific Ocean access, connectivity into low cost U.S. gas producing basins, deep water access, and a best-in-class management team."

About Mexico Pacific Limited LLC

MPL is a North American LNG project located on the West Coast of Mexico with substantial cost and logistical advantages achieved by connecting the abundant Permian and San Juan gas basins in the United States to Asian LNG markets.  MPL's facility will be constructed by a world-class EPC contractor using proven equipment supplied by Baker Hughes and proven liquefaction technology. MPL will build its 12 mtpa LNG liquefaction facility on the 1,100-acre site owned by MPL in Puerto Libertad, Sonora, Mexico, roughly 200 km south of the US Arizona border. MPL is controlled by AVAIO Capital. More information can be found at www.mexicopacificlimited.com.

About MUFG

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo and with more than 360 years of history, MUFG has a global network with over 2,700 locations in more than 50 countries. The Group has over 180,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to "be the world's most trusted financial group" through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english.

About AVAIO Capital

AVAIO Capital is a build-to-core infrastructure investment firm led by professionals from investment, development, engineering, construction, and operating backgrounds. In aggregate, the team has completed more than $4 billion of equity transactions and over $50 billion of infrastructure development and construction projects across the water, transportation, digital and energy sectors. AVAIO's makes equity investments in the creation and redevelopment of infrastructure assets throughout North America and Europe. Entities affiliated with AVAIO Capital are the majority and controlling investors in MPL. More information can be found at www.avaiocapital.com.

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