Project detail - Generación Eléctrica Argentina Renovable I S.A. Sucursal Dedicada PEO

Who is our customer?

The borrower is Generación Eléctrica Argentina Renovable I S.A. Sucursal Dedicada PEO (“GEAR PEO”), a dedicated project branch of GEAR S.A., established under Argentina’s Régimen de Incentivo para Grandes Inversiones (“RIGI”) regime for the financing of the Olavarría Wind Farm. GEAR S.A. is jointly owned by Petroquímica Comodoro Rivadavia (PCR) (51%) and Acindar (49%). PCR, the majority shareholder and Parent Guarantor, is a long‑established Argentine energy and industrial group founded in 1921 and controlled by the Brandi and Cavallo families. Historically active in oil & gas and cement, PCR has significantly expanded into renewable energy since 2016 and is now Argentina’s second‑largest renewable energy producer, operating 545 MW across six wind farms and one solar PV plant.

What is our funding objective?

GEAR PEO uses the funding to construct a 180 MW greenfield wind farm in Olavarría, as well as to finance the repowering and expansion of the Olavarría and Ezeiza substations and the construction of a 25 km transmission line. These investments are essential to maintaining 100% dispatch priority and enabling the integration of additional renewable capacity into Argentina’s grid. The total project cost amounts to USD 275 mln.

Why do we fund this investment?

This transaction supports the expansion of renewable energy generation in Argentina and the strengthening of critical grid infrastructure, which is required to accommodate additional renewable capacity in an increasingly congested transmission system. By reducing reliance on conventional power generation, the project contributes to enhanced energy sustainability and decarbonisation, in line with FMO’s Energy and Climate Strategy. The transaction is labelled Green, given its exclusive focus on renewable energy generation and associated enabling infrastructure.

What is the Environmental and Social categorization rationale?

The E&S category for this project is A under FMO’s Sustainability Policy, consistent with IFC’s Category A classification. The applicable IFC Performance Standards (PSs) triggered are PS1, PS2, PS3, PS4, PS5, and PS6. As this transaction represents a B-loan participation, FMO relied on IFC as lead arranger for the E&S due diligence. The following summary is extracted from IFC’s disclosure website (https://disclosures.ifc.org/project-detail/ESRS/49802/pcr-renewables), which can be consulted for additional information: This is a Category A project. Key environmental and social (E&S) risks and issues include: (i) effective implementation of corporate ESHS standards; (ii) company- and project-level capacity to assess and manage ESHS risks; (iii) labor and working conditions and grievance mechanisms; (iv) contractor and supply-chain EHS management; (v) occupational health and safety, life and fire safety, and emergency preparedness and response; (vi) pollution prevention and waste management; (vii) community health, safety and security; (viii) land acquisition and involuntary resettlement; (ix) impacts on sensitive and high-value biodiversity and ecosystem services; and (x) stakeholder engagement and grievance management related to E&S matters.