Project detail - PACIFIC SOLAR ENERGY S.A. DE C.V.


Status: Approved investment
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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

Pacific Solar Energy, S.A. de C.V. is the client, established in Honduras as a limited liability company (a.k.a. "PSE"). PSE is a PV Solar project with two phases. Late 2016 the construction of Phase I with 25MWac was largely completed and this phase became fully operational in the 4th quarter of 2017. Phase I was funded by the Sponsor and as of late 2016 with senior debt from DEG - Deutsche Investitions- und Entwicklungsgesellschaft mBH, a development finance institution based in Germany. The construction of Phase II, with an additional 25MWac, will start soon and is expected to become operational by mid-2018. FMO provided senior and sub-senior debt to PSE in order to complete the funding of Phase II and have all phases operational before the end of 2018.

What is our funding objective?

PSE’s investments and FMO’s debt funding do directly contribute to more sustainable electricity generation in Honduras, where long term demand still exceeds supply. This will reduce among others Honduras’ dependence upon imported fossil fuels.

Why do we fund this investment?

Funding renewable energy projects like PSE is part of FMO’s core business. The total investment costs for both phases of PSE are over USD 123 million. FMO contributes approximately USD 42 million in senior loans (which includes amounts to be syndicated to some participants) and a smaller amount as sub-senior loan. FMO looks forward to working with participants under FMO’s senior loan, which will then be evidence of FMO’s ability to mobilize and catalyse funds from third parties.

What is the Environmental and Social categorization rationale?

The E&S category is B+, reflecting working and labour conditions and health and safety risks to employees and communities, mainly during construction; optimization of water use for cleaning the solar panels, given the arid environment; design and construction of an effective drainage system; land clearing and reforestation. IFC PS6 may be applicable as a few fruit-eating bat individuals (Artibeus inopinatus) were viewed on site. This bat species is considered by some experts to have a restricted range (El Salvador, Honduras and Nicaragua) and further investigation will be carried out regarding its habitat and potential project impacts on this species. FMO’s E&S DD indicates that the Project will have impacts consistent with the following IFC PSs: PS 1 - Assessment and Management of Environmental and Social Risks and Impacts PS 2 - Labour and working conditions PS 3 - Resource Efficiency and Pollution Prevention PS 4 - Community Health, Safety and Security PS 6 - Biodiversity Conservation and Sustainable Management The following PS are, as seen by FMO, not applicable to this project: PS5 – Land Acquisition and Involuntary Resettlement: the project will not lead to physical or economic displacement. All transactions have been done on “willing buyer – willing seller” basis. PS7 – Indigenous Peoples: the project will not impact communities of indigenous people nor their lands and resources. PS8 – Cultural Heritage: according to archaeological investigations, the project is not expected to have impacts on cultural heritage. A chance finds procedure will be developed and the contractors will be trained to use it if necessary

More investments

Date Total FMO financing
12/14/2017 USD 6.18 MLN
12/14/2017 USD 13.00 MLN
Website customer/investment
Latin America & The Caribbean
Publication date
Effective date
Total FMO financing
USD 29.22 MLN
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)