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FMO, FinDev Canada and Proparco support Argentinian renewable energy sector with USD 100 million FMO-syndicated loan to Genneia
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FMO, FinDev Canada, and Proparco, the Dutch, Canadian, and French development finance institutions, announced the signing of a USD 100 million syndicated facility to its longstanding customer Genneia S.A, Argentina’s largest wind and solar power producer. Acting as lead arranger and facility agent, FMO contributed a total of USD 30 million as lender to this facility. FinDev Canada, Canada’s bilateral Development Finance Institution, and Proparco, a subsidiary of the Agence Française de Développement Group (AFD Group), contributed as lenders to this transaction with USD 40 million and USD 30 million, respectively. The funding will be used to finance the construction of two greenfield renewable energy projects: a 90 MW and 180MW photovoltaic solar plants.
This loan will enable Genneia to grow its renewable energy generation capacity by building two solar PV projects in the Malargüe and Luján de Cuyo municipalities in Argentina. Both projects will supply green electricity to corporate off takers, enabling these companies to meet their sustainability targets. The projects will add 270 MW of renewable energy, contributing to Argentina’s goal of increasing non-hydro renewable energy to 20% of the national energy mix by 2025.
The financing of two renewable energy projects will contribute to Genneia’s decarbonization strategy to reach carbon neutrality in 2030, thereby fully transitioning to wind and solar energy generation.
Huib-Jan de Ruijter, FMO’s Co-Chief Investment Officer, said, “We are thrilled to continue supporting our long-term client Genneia through long-term financing, whilst playing a critical role in climate mitigation, enabling Argentina’s renewable energy transition. While mobilizing these funds with FinDev Canada and Proparco, we aim at jointly maximizing our impact together with Genneia.”
“We are proud to be working once again with Genneia to enable Argentina's transition towards renewable energy,” declares Paulo Martelli, VP and Chief Investment Officer, FinDev Canada. “This second transaction highlights the strength of our partnership, and we look forward to continuing to build on this relationship and enabling Genneia to make a significant impact in the region, while also working with Proparco and FMO” Mr. Martelli adds.
Scarlett Carré de Malberg, Deputy Head – Lending operations at Proparco, said: “Proparco is delighted to support Genneia, a leading Argentine player committed to the country's ecological transition, alongside FMO and FinDev Canada. Contributing to increasing the country's energy mix while promoting improved access for Argentina to clean, reliable and affordable energy is an objective perfectly in line with Proparco's strategy in favor of our planet. This transaction, which strengthens Proparco’s presence in Argentina’s renewable energy sector, is also an opportunity to reinforce Proparco’s cooperation with FMO and FinDev Canada."
Carlos Palazón, Chief Financial Officer at Genneia, highlighted: “We are pleased to announce a new long-term financing agreement with our longstanding partner from the Netherlands, along with the recent partnerships from Canada and France. The support from these institutions strengthens our leadership in Argentina and enables us to fulfill our commitment to supply renewable energy to large industrial users, progressing on the decarbonization of Argentina industry. This agreement reinforces our leadership in securing long-term financing from development banks and export credit agencies”.
The loan also qualifies for the 2X Challenge, based on Genneia’s commitments to strengthening its gender-inclusive practices.