Mexican energy company IENova secures a US$200 from IFC, NADB to fund solar power projects

MEXICO – Infraestructura Energética Nova S.A.B. de C.V. (IEnova), a Sempra Energy Company has secured a US$200 million loan from the International Finance Corporation (IFC) and North American Development Bank (NADB) to finance four solar power plants with a total capacity of 376 MW across Mexico.

A statement from IFC stated that the financing is part of its efforts to work with leading private-sector firms in Mexico to promote climate change mitigation projects, including the development of non-conventional renewable energy.

“This investment, in addition to other recent IFC-financed solar power generation projects, is part of our long-standing support to foster the development of a sophisticated and competitive power market in México,” said Georgina Baker, IFC’s Vice President for Latin America and the Caribbean.

The statement further revealed that IFC was providing a US$100 million loan from its own account and, initially, mobilizing another US$100 million from NADB.

The NADB loan according to the statement will be oriented completely to the design, construction and operation of IEnova’s 125 MW solar park, “Don Diego”, located in the municipality of Benjamin Hill, Sonora.

“We are very pleased to receive the first loan certified under the Green Loan Principles that IFC grants to a company in Mexico,” said Tania Ortiz, CEO of IEnova.

“Once again, IEnova is at the forefront and stands out as a leader, not only because of its innovation and financial discipline, but also for its high standards in terms of sustainability,” she added.

IEnova is one of the largest private sector energy companies in Mexico, with operations in natural gas, power generation and refined products storage segments. The projects being financed are the company’s first in the solar energy space.

It is anticipated that IEnova’s solar power plants will reduce emissions by 561,652 tons/year of carbon-dioxide equivalent, thus supporting the Government of Mexico’s efforts to cut greenhouse-gas emissions and helping to diversify the country’s energy supply.

“With this project, Sonora is becoming one of the top producers of solar energy in Mexico and thus helping the Mexican government reach its renewable energy goal,” stated NADB Managing Director Calixto Mateos-Hanel.

IFC, the project’s lead financier, has been one of the largest financiers of the power sector in emerging markets, committing $6.7 billion (including mobilization) as of FY 2018 to support power sector-related investments.

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