IDB Invest finances the construction of a photovoltaic solar plant in Mexico
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, provides a $37 million financing package for the construction and maintenance of a 60MW photovoltaic solar plant in the state of Guanajuato, Mexico. The project is developed by the company X-Elio, a global leader in photovoltaic solar energy.
This photovoltaic plant will contribute to increase the installed capacity of non-conventional renewable energy in Mexico and to the diversification of the country's energy matrix. The project will displace the equivalent of 1.43 million tons of carbon dioxide in the next 20 years and the electricity generated will be connected to the national grid of the Federal Electricity Commission (CFE).
The financial package consists of a combination of a $9.6 million IDB Invest loan, and the mobilization of two more loans, one of $3.6 million from the Canadian Climate Fund for the Private Sector of the Americas (C2F) and another of $3.2 million from the Chinese Fund for the Co-financing of the Americas. The package also includes the management of a loan of $7.8 million from MUFG Bank and a loan of $12.8 million from the Official Credit Institute (ICO) of Spain.
The project, awarded in a competitive bid, has a tenor of up to 20 years for IDB Invest and ICO tranches, and a tenor of 16 years for commercial banking. It is part of the first group of operations closed under the Electricity Industry Law of Mexico, effective since August 2014, which establishes a restructuring of the energy industry. The objective of this new legislation is to encourage the participation of the private sector, reduce costs and tariffs, and increase the use of clean energies, guaranteeing transparency in the sector.
The early participation of IDB Invest has contributed to strengthen the regulatory framework, has allowed the mobilization of capital from the funds and has favored the creation of a more propitious environment to attract the participation of the private sector. Additionally, IDB Invest strengthens the sustainability of the project by promoting the required environmental and social standards.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About X-Elio Energy
X-ELIO is a company specialized in the development, construction, operation and maintenance of solar plants with presence in the United States, the Middle East, Japan, South Africa, Latin America (Mexico and Chile among others), Australia, Southeast Asia, Italy and Spain. In 2016 it achieved revenues of more than 125 million euros. With cumulative experience of more than 1,200 MW in photovoltaic solar plants, it currently has 52 solar parks in operation and presence in 15 countries. The group is a leader in the global renewable and sustainable energy industry, with a firm commitment to reducing greenhouse gases and fighting climate change.