IFC Awards $600 Million Loan to Engie Energia Peru for Renewable Energy Projects

Strategic Insights -

The International Financial Corporation (IFC) has awarded a corporate loan of up to US $600 million to Engie Energia Peru, a leading electricity generation company in the country, to support the development of renewable energy projects and accelerate the transition to a low-carbon economy. The loan is structured as a green loan and is linked to sustainability, marking a significant step in the collaboration between IFC and Engie Peru to promote innovative energy solutions. The funds will be used to finance three key initiatives: the construction of the Central Intipampa Solar Expansion, the refinancing of the Duna and Huambos wind farms, and the development of an energy storage system. The loan is also tied to three key performance indicators (KPIS) designed to generate a tangible impact, including increasing the proportion of renewable energy in Engie Peru's total installed capacity, implementing climate adaptation plans, and promoting gender equity in management positions.

Key Takeaways:

  • The loan is structured as a green loan, a first-of-its-kind collaboration between IFC and Engie Peru, and is linked to international standards established by the Association of Loan Markets and the International Association of Capital Markets.
  • The funds from the loan will be used to finance the construction of the Central Intipampa Solar Expansion (51.7 MW), the refinancing of the Duna and Huambos wind farms (36.8 MW), and the development of an energy storage system (26.5 MW).
  • The loan is tied to three key performance indicators (KPIS), including increasing the proportion of renewable energy in Engie Peru's total installed capacity, implementing climate adaptation plans, and promoting gender equity in management positions.
  • The loan reflects IFC's commitment to the development of energy solutions that promote economic growth, encourage employment creation, climate resilience, and access to clean energy.
  • Engie Peru has a development portfolio of over 1,600 MW and a renewable generation that represents 30% of its total production.

Statistics:

  • US $600 million: the maximum amount of the corporate loan awarded to Engie Energia Peru
  • US $120 million: the first section of the loan, structured as a green loan, linked to sustainability
  • 51.7 MW: the capacity of the Central Intipampa Solar Expansion
  • 36.8 MW: the capacity of the Duna and Huambos wind farms
  • 26.5 MW: the capacity of the energy storage system
  • 30%: the proportion of renewable energy in Engie Peru's total production

Sources:

  • The International Financial Corporation (IFC) - Euclid Infotech Pvt. Ltd.