Spain's Cox prepares multibillion investment plan focused on Mexico

MADRID, Aug 7 (Reuters) - Spanish energy company Cox COXGA.MC will focus its new strategic plan on Mexico, where it envisages more than $10 billion in water and renewable energy investments by 2030, CEO Nacho Moreno told Reuters.

This figure includes the company's $4.2 billion acquisition of Iberdrola's IBE.MC assets in the country, a "transformational" deal that allowed Cox to already reach targets it had set for 2028, Moreno said.

The new plan is expected to be presented on September 25.

The Iberdrola deal included 15 power plants with 2.6 gigawatts of capacity and an 11.8-GW pipeline of renewable projects.

Cox will develop at least two or three gigawatts from this pipeline, Moreno said, and has already identified six desalination projects it will prioritise, which require an investment of around $1.5 billion.

"The power demand and the water demand are only growing" in Mexico, he said. "Through this acquisition, we are extremely well-placed to capture both."

Moreno expects synergies between Cox's water and energy operations and its unit offering services like engineering and operating and management of facilities and infrastructure. The services unit, for example, will handle engineering for the new capacity it will develop, he said.

Cox expects the acquisition will more than double revenue estimates for this year to around 2.7 billion euros ($3.15 billion) and more than triple expected earnings before interest, taxes, depreciation and amortisation to 720 million euros.

Operating cash flow should rise to around 450 million euros from around 100 million euros expected previously.

"When you generate $500 million of cash flow, clearly you're jumping to another league," Moreno said.

The acquisition, 75% of which will be funded with debt and the rest with equity, will be carried out through a new company owned by Cox.

Cox will inject capital for the equity, along with two international investors which will get preferred securities, Moreno said, declining to name the investors.

For the debt, Cox has secured support from Citigroup C.N, Bank of America BAC.N, Santander SAN.MC, Barclays BARC.L and BBVA BBVA.MC, he said.

($1 = 0.8573 euros)