As part of its commitment to support climate action and mitigation, FMO announced today a USD 85 mln syndicated facility to its longstanding customer Genneia S.A, an Argentinean power producer. Acting as lead arranger and agent, FMO contributed a total of USD 45 mln as lender to this facility. FinDev, the Canadian development finance institution, also contributed as lender to this transaction through a loan of USD 40 mln. The funding will be used to finance the construction of two greenfield renewable energy projects: a 60 MW photovoltaic solar plant, and a 140 MW wind farm.
Genneia is one of Argentina’s leaders in renewable energy, holding roughly a quarter of the country’s installed renewable energy capacity and having a gross installed capacity of approximately 1,230 MW (866 MW coming from wind and solar plants). As true pioneers in the country, the company has also built the largest wind farms in Argentina.
The two projects, which FMO and FinDev are partly financing, further highlight Genneia’s commitment to renewable and sustainable energy. Tocota III, the solar plant, will be built roughly 50 kilometers away from the Iglesias department in the San Juan province, with an estimated completion date of early 2024. La Elbita I & II, the wind farm, will be located roughly 50 kilometers away from the south of the city of Tandil in the Buenos Aires province. Both projects will supply green electricity to corporate offtakers, enabling these companies to meet their sustainability targets.
Through this facility, FMO will be able to expand its exposure in the Argentinean renewable energy sector while collaborating with a reliable and experienced power producer, providing Genneia with long-term 10-year financing (which is extremely scarce in Argentina
.). Most importantly, FMO will contribute to long-term climate action in line with our commitment for a net-zero portfolio by 2050 (which has been further elaborated on in our Climate Action Plan and updated 2030 Strategy).
Huib-Jan de Ruijter, Co-Chief Investment Officer, said, “This latest transaction with our long-term client plays a critical role in climate mitigation, while simultaneously shifting the needle on Argentina’s renewable energy transition. We believe we are uniquely positioned to positively contribute to climate action for a just and inclusive transition for all our customers, as demonstrated through this loan. As we mobilize these funds with FinDev Canada, we look forward to jointly maximizing our impact together with Genneia.”
Genneia is the leading renewable power generation company in Argentina. The company is primarily engaged in the generation of electrical power from both renewable (wind and solar power) and conventional (thermal power) sources. As of December 2022, total installed capacity was 1,230 MW (866 MW of renewable and 363 MW of thermal). Genneia has delivered a US$ 1bn renewable energy expansion plan of 14 projects for 706MW in 3.5 years.
About FinDev Canada
FinDev Canada is Canada’s bilateral development finance institution. It supports development through the private sector in emerging markets and developing economies with financing, investment, blended finance solutions and technical assistance. It aims to promote sustainable and inclusive growth with a focus on climate action, women’s economic empowerment, and market development in alignment with the Sustainable Development Goals and Paris Agreement commitments. FinDev Canada is a Crown Corporation and subsidiary of Export Development Canada (EDC).