UEP PENONOME II S.A.
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
UEP Penonome II S.A. is a project company that will develop, construct and operate the 215 MW Penonome II wind farm in Panama. The main shareholder is InterEnergy, a fund active in the (renewable) energy sector in Central America and dedicated to this project. InterEnergy's predecessor is Basic Energy, which had near 25 years of investment and operational experience in the power sector having acquired and developed over 1,500 MW in the Dominican Republic, Argentina, Panama and Jamaica.
What is our funding objective?
FMO is providing a US$25 million senior loan with a tenor of 17 years. This product complements the shorter tenor of local commercial funding for the project, and without it the project would not be financially viable. the funds will be used for the construction of a windfarm with 86 turbines, a substation and the associated transmission lines. Since this project will be linked to Penonome I (finished early 2014) part of these facilities have been built already.
Why do we fund this investment?
Once completed Penonome will be the largest wind farm in Central America. It is also part of Panama's first windfarm. The 86 turbines will provide clean energy to the Panamanian grid, which will be particularly important during the dry season when hydropower plants in the region provide less electricity. Since the windy season coincides with the dry season Penonome II fits perfectly with Panama's strategy to diversify its energy mix and become less depended on fossil fuels. Moreover, in Panama demand frequently outweighs supply, which shows the importants of this energy project.
- Website customer/investment
- http://www.interenergy.com
- Region
- Latin America & The Caribbean
- Country
- Panama
- Sector
- Energy
- Effective date
- 12/9/2014
- End date
- 2/16/2021
- Total FMO financing
- USD 25.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+