IDB Invest provides an up to $300 million loan (with FMO contributing $100 million) to ENGIE Energía Peru S.A. (EEP) to finance the construction of the 296.4MW Punta Lomitas greenfield wind farm including its expansion and transmission lines located in the Department of Ica, 300 kilometers south of Lima, the capital of Peru. This is the largest non-conventional renewable energy project in the country to date.
The financing consists of a fully underwritten IDB Invest loan package of up to $300 million, which includes resources mobilized from the Dutch entrepreneurial development bank (FMO) for $100 million and with BNP Paribas for $55 million.
The project will contribute to diversify Peru´s energy generation matrix, currently dominated by hydroelectricity and thermal generation. Punta Lomitas will supply approximately 1,7-Gigawatt hours per year of clean energy and reduce the country’s carbon footprint by displacing greenhouse gases emissions.
IDB Invest’s participation confirms EEP´s alignment with the project’s sustainability and its compliance with national and international standards in evaluation and management of E&S risks and impacts, labor and working conditions, efficient use of resources and pollution prevention, and community health and safety.
The deal further supports IDB Invest’s commitment to working with the private sector to increase climate action and achieve sustainable growth.
The deal is expected to contribute to five of the United Nations Sustainable Development Goals: Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Climate Action (SDG 13), and Partnership for the Goals (SDG 17).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $15.3 billion in assets under management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About EEP
ENGIE Energía Peru S.A. (EEP) is Peru’s second largest private power generation and energy infrastructure company, serving electricity distribution, mining, industrial, and commercial clients. EEP has been operating in Peru for 25 years. It currently operates eight power plants: two hydro, one solar, two natural gas, two dual fuel plants (gas/diesel), and one coal plant that will stop operations in December 2022 distributed along 4 geographical regions (Lima, Pasco, Ancash and Moquegua). EEP is 61.7% owned by ENGIE, one of the largest global energy companies, which is committed to rapidly reduce its carbon footprint and become carbon neutral by 2045.
