Genneia S.A.
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
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 prospective customer?
Genneia S.A. (existing client of FMO) is an Argentinian-based renewable energy generation company that holds approximately 19% of the country's installed renewable energy capacity as of April 2024, making Genneia a leader in the renewable energy sector in Argentina. The company is involved in the entire cycle of power generation: from prospection and development to the construction and operation of renewable and conventional power plants. Genneia is a pioneer in promoting renewable energy in Argentina.
What is our funding objective?
The transaction is a USD 30 mln corporate loan (A-loan), and the proceeds will be used to finance part of the construction cost of Los Molles, a 93 MW solar project in Malargue, which is located in the province of Mendoza, and of Anchoris, a 180 MW PV solar project in Lujan de Cuyo, also in the province of Mendoza.
Why do we want to fund this investment?
This transaction will be used to support Genneia’s expansion of renewable energy projects (specifically Los Molles and Anchoris) which is aligned with FMO’s energy sector strategy. This transaction supports the development of solar energy, therefore it is eligible for a Green Label. FMO’s additionality is apparent with the availability of long-term debt financing (10 years) in USD, which is scarce in Argentina.
What is the Environmental and Social categorization rationale?
The projects have been categorized as B+. IFC Performance Standards (PS) 1-4 and 8 have been triggered. Key risks include health and safety during construction, impacts on the communities around the project sites, and potential archaeological findings at Los Molles. Solar glare effect and proximity to an LNG power plant in Anchoris need consideration. Associated facilities pose no significant risks. PS5-7 have not been triggered. No economic displacement or biodiversity concerns are expected, although a further assessment of Los Molles is needed regarding biodiversity. No adverse findings in background checks. No land governance issues have been identified. No indigenous lands will be affected. Environmental and social due diligence will confirm all aspects.
More investments
| Date | Total FMO financing |
|---|---|
| 2/16/2023 | USD 45.00 MLN |
- Website customer/investment
- https://www.genneia.com.ar/en/
- Region
- Latin America & The Caribbean
- Country
- Argentina
- Sector
- Energy
- Publication date
- 5/22/2024
- Deadline for feedback
- 7/21/2024
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
-
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+
- Translation
- https://www.fmo.nl/genneia-s.a.