Mexico City, April 26, 2013. IENOVA, S.A.B. de C.V. (BMV: IENOVA*) today reported its first quarterly financial results as a publicly-traded company.  IENOVA is the first energy company to be listed on the Mexican stock exchange.  Following the public debt issuance and its initial public offering, the company is in a strong financial position and is focusing its efforts on the execution of new energy infrastructure projects.  The company recorded first-quarter 2013 profit of $61 million, compared to $68 million in the first-quarter 2012.  The variance was mainly due to an increase in ongoing administrative expenses related to the expansion of the company’s corporate structure, debt issuance and one-time initial public offering expenses, lower earnings at the joint venture with Pemex due to unfavorable foreign exchange effects on income tax, and increased expenses at Termoeléctrica de Mexicali due in part to timing of energy management services fees compared to the prior year, offset by favorable foreign exchange effects on consolidated income tax.

Developments during first-quarter 2013

IENOVA issued two series of notes, referred to as CEBURES, in an aggregate principal amount of Pesos 5.2 billion (approximately $408 million):

• Pesos 3.9 billion (equivalent to $306 million) of 10-year notes with a fixed interest rate of 6.30%.
• Pesos 1.3 billion (equivalent to $102 million) of 5-year notes with a variable interest rate equal to the 28-day Mexican Interbank Equilibrium Rate plus 0.30%.

In order to hedge the Mexican Peso exposure, IENOVA entered into a cross currency swap agreement which converted the proceeds of the debt offering into U.S. dollars and fixed the variable interest rate note. The weighted average interest rate, in U.S. dollars, for the notes maturing in 2018 is 2.66% and, for the notes maturing in 2023, is 4.12%.  The net proceeds of the CEBURES offering, which were approximately $405 million, were used to repay approximately $356 million in affiliate debt and to fund new investments.

A dividend in the amount of $39 million was declared and paid on March 1, 2013.

IENOVA priced its initial public offering registered in Mexico of 98,623,879 shares of common stock along with a concurrent private offering of 91,037,426 shares at a value of 34.00 Pesos per share. On the same day, the 30-day overallotment options provided to the underwriters in the Mexican public offering and the initial purchasers in the private offering consisting of 28,449,195 shares of common stock were exercised. After the initial offerings and over allotment options exercise, the aggregate shares of common stock sold represent approximately 18.9 percent of IENOVA’s outstanding ownership interest.  The total capital raised was Pesos 7.4 billion (approximately $599 million) and proceeds will be used to fund capital expenditures for new infrastructure projects.

 “We are pleased with the operating results during the quarter and we are on-track to meet our 2013 financial goals,” said Carlos Ruiz Sacristan, Chairman and CEO of IENOVA. “We are making excellent progress in the development and construction of all of our new infrastructure projects. In this regard, we received the final approval from the Comision Reguladora de Energia for our first wind generation project in Baja California.  Additionally, the legal injunctions (amparos) to the Sonora Pipeline project tenders were dismissed.  We are very proud to have completed our first debt offering and to be the first publicly traded energy company quoted on the Mexican stock exchange.”

IENOVA is focused on the development, construction and operation of energy infrastructure in Mexico. The company’s footprint in Mexico ranges across several business lines encompassing the entire energy infrastructure value chain that is open to private investment in Mexico.

Amounts are presented in U.S. dollars, the functional currency of the company, except where noted, and in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “will,” “would,” ”could,” “should,” “potential,” “target,” “outlook,” “depends,” “pursue,” “goals” or similar expressions, or discussions of our guidance, strategies, plans, goals, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the Mexican Energy Ministry (Secretaría de Energía), the Mexican Energy Regulatory Commission (Comisión Reguladora de Energía), the Mexican Environmental Protection Ministry (Secretaría de Medio Ambiente y Recursos Naturales), Mexican Federal Electricity Commission (Comisión Federal de Electricidad), the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, U.S. Department of Energy, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in Mexico, the United States and other countries where the company does business; capital market conditions, including the availability of credit and the liquidity of our investments; inflation, interest and exchange rates; the impact of benchmark interest rates; the timing and success of business development efforts and construction, maintenance and capital projects, including risks inherent in the ability to obtain, and the timing of granting of, permits, licenses, certificates and other authorizations; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks posed by decisions and actions of joint venture partners; wars, local crime, terrorist attacks and cybersecurity threats; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the status of deregulation of retail natural gas and electricity delivery; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise those forward looking statements whether as a result of new information, future events or otherwise. These risks and uncertainties are further discussed in the draft prospectus that IEnova has filed with the Mexican National Banking and Securities Commission. These reports are also available through the Mexican National Banking and Securities Commission’s website, at www.cnbv.gob.mx, the Mexican Stock Exchange, at www.bmv.com.mx, and on the company’s website at www.ienova.com.mx.