Genneia S.A.
Status: Proposed investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
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?
Please note that the 'proposed investment' disclosure for this transaction was initially published on May 22, 2024. The 'deadline for feedback' expired on July 21, 2024. FMO is proceeding to finalize the contract with Genneia S.A for this transaction. Considering the financing of an additional project, San Rafael, FMO is republishing the transaction details. This updated publication includes a new 'publication date' and a revised 'deadline for feedback.' FMO will commence funding for the San Rafael site only after the new feedback deadline has passed. Genneia S.A. (existing client of FMO) is an Argentinian-based renewable energy generation company that produces approximately 19% of the country's renewable energy 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 loan, and the proceeds will be used to finance part of the construction cost of Los Molles, a 93 MW solar project in Malargue, Anchoris, a 180 MW PV solar project in Lujan de Cuyo and San Rafael, a 150 MW solar project located 81km from the city San Rafael. All projects are located 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, Anchoris, and San Rafael) 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 evident as the availability of long-term debt financing (10 years) in USD 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 apply. Additional analysis is being done to determine whether IFC PS 6 would apply at San Rafael due to the site's location in a (potentially) natural habitat. IFC PS 6 is not applicable to Anchoris and Los Molles. IFC PS 5 and PS 7 are not applicable to any project. Key risks include health and safety during construction, impacts on the communities around the project sites, potential archaeological findings at Los Molles, and (potential) biodiversity impacts on San Rafael. Solar glare effect and proximity to an LNG power plant in Anchoris will be a point of attention. Associated facilities pose no significant risks. Land governance issues have been identified in Anchoris and are managed adequately by Genneia in adherence with human and legal rights No land issues are being identified in Los Molles and San Rafael. Environmental and social due diligence has been completed for Anchoris and Los Molles, and it is ongoing for San Rafael; therefore, additional E&S aspects could arise from San Rafael’s ESDD.
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
- 10/7/2024
- Deadline for feedback
- 12/6/2024
- 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.