news - Supporting A Cleaner, Affordable Energy Supply in Colombia

FMO has participated in the financing of two PV solar plants in Colombia, with a total installed capacity of 252 MWp, La Mata (108.3 MWp) located in the Municipality of La Gloria, Cesar and La Union (144.5 MWp) located in Montería, Córdoba. These projects will provide a significant increase of the renewable energy capacity of Colombia, a country in which non-conventional renewable sources accounts only for 1% of the total energy generation, helping to improve Colombia’s energy matrix. This will be one of the largest solar plant financing packages in the country to date.

Senior lenders are IDB Invest and Bancolombia. FMO provided a senior secured project finance B-loan facility under the umbrella of IDB Invest. This transaction fits well within FMO energy strategy of promoting clean energy, as the loan will be used for 100% green power generation projects.

Both parks are expected to be operational by mid-2023, reaching a combined renewable energy production of around 440GWh per year, equivalent to the annual consumption of more than 230,000 homes in Colombia. 

The client, Solarpack Corporación Tecnológica S.A.U., is a multinational IPP developer with presence in Europe, North American, Latin America, Asia and Africa. Its purpose is to accelerate the transition to clean and affordable energy for all. To this end, Solarpack generates ‘products and services’ in the field of clean energy.

Founded in 2005 as one of the first pure solar PV developers and independent power producers in Spain,. Solarpack has developed about 1,151 MW and built 894 MW of PV plants, and operates 916 MW of installed capacity in 6 countries, 3 of which FMO has focus on (Peru, Colombia and India). Solarpack is the fifth most sustainable renewable energy company in the world according to Sustainalytics, and the company has 670 MW in operation with a goal of reaching 4.6 GW by 2026.

“We are very excited to be contributing to the diversification of the energy mix in Colombia and to be one of the first players in this promising field. Our hope is to spearhead a transition to clean energy sufficiency in the country” Angie Salom, Manager Energy at FMO.

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 asset 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.

Bancolombia is a financial group with a 147-year history, and with a presence in Colombia and Central America. It offers its portfolio of financial and non-financial products and services to more than 25 million customers. It provides, among others, commercial and consumer banking services, stock brokerage, financial leasing, factoring, fiduciary services, asset management, private banking and investment banking. It’s committed to promoting sustainable development to achieve the well-being of all, seeking to impact the communities in the countries in which it operates