ENGIE ENERGÍA PERU S.A.
Status: Approved 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
ENGIE Energia Peru S.A. is the second largest private power generation and energy infrastructure company in Peru, supplying over 10% of the total power consumed in the country. ENGIE Energia Peru’s shares are listed in the Lima Stock Exchange. The Company has a local credit rating of AAA (stable) by Moody's and Fitch. ENGIE Energia Peru is part of ENGIE Group, which is present in around 50 countries. In Latin America, ENGIE Group is present in Argentina, Chile, Colombia, Mexico and Peru. ENGIE Energia Peru is working on a more sustainable power generation, to align with the ENGIE Group’s goal of being Net Zero Carbon by 2045, reaching an installed renewable energy capacity of 80 GW by 2030, and exiting all coal assets globally by 2027.
What is our funding objective?
FMO will follow IDB under its A-loan through a Participation Agreement between IDB and FMO. The transaction is a Corporate loan and the funds will expand ENGIE Energia Peru’s renewable portfolio in Peru through the construction of the Punta Lomitas Wind Farm, a 296 MW greenfield wind farm and 60 kilometers of an associated transmission line, located about 300 kilometers south of Lima. It will be the Company's first wind farm and the largest of its kind in Peru. ENGIE Group is very active in wind energy globally (on and offshore as well floating) with the aim to reach 80GW in 2030.
Why do we fund this investment?
The loan will be used for 100% green power generation project, as well as it provides an opportunity to FMO to gain presence in Peru. This financing will provide longer-term liquidity that is not available in the local market given the current COVID-19 context and political instability in Peru. Currently only 1-2% of the estimated potential of wind and solar sources is being harnessed in Peru. This transaction will help the country to continue benefitting from its renewable energy potential given its privileged resource availability by diversifying the energy matrix towards cleaner sources and reducing its carbon intensity.
What is the Environmental and Social categorization rationale?
FMO’s E&S Category for this transaction is B+. ENGIE Energia Peru has a very proactive approach to E&S and has received awards on their ESG practices. At the corporate level, ENGIE has several E&S policies including: (i) Social; Occupational Health and Safety; (iii) Environmental; (iv) Salary; (v) Corporate Sustainability. The following IFC Performance Standards are triggered: 1-4, 6, and 8. IFC PS5 and 7 are not considered triggered as the wind farm is not located in sites considered of high archaeological, paleontological or cultural value, and there will not be any impacts on indigenous people. Plans and mitigants have been put in place or are part of the Environmental and Social Action Plan (ESAP) items to mitigate construction and operation risks.
- Region
- Latin America & The Caribbean
- Country
- Peru
- Sector
- Energy
- Effective date
- 8/5/2022
- Total FMO financing
- USD 100.00 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+