Project detail - 360 Energy Solar SA

Who is our prospective customer?

The Borrowers are 360 Energy Solar S.A. and 360 Energy Catamarca S.A. (together, “The Group” ), Argentine project companies and wholly owned subsidiaries of 360 Energy S.A., responsible for the design, development, construction, maintenance and operation solar photovoltaic (PV) projects in Argentina. The financing applies only to the Argentine subsidiaries, with the corresponding Power Purchase Agreements (PPAs) serving as the collateral for the transaction. The Group is a leading Argentine renewable energy platform focused exclusively on solar generation with a consolidated portfolio of 246.7 MWp of solar assets in Argentina operating under the GENREN, RenovAr, and MATER schemes. The Group has a 49.5% equity participation by FCA Automobiles Argentina S.A. from Stellantis Group, with the remaining ownership held by the company’s founder, Alejandro Ivanissevich (founder of Genneia S.A., a longstanding client of FMO) through the vehicle Ivanissevich Family Trust.

What is our funding objective?

The financing will be used to support the development, construction, and operation of a portfolio of utility?scale solar photovoltaic projects in Argentina, comprising the PSF Arrecifes (19.2 MW), Realicó (18 MW), and La Rioja IV (46 MW) solar farms, including a battery storage component. In addition, part of the proceeds will be used to refinance short?term debt with local Argentine banks, associated with two solar parks: one in operation (Córdoba, 8.1 MW) and another under construction (El Palomar, 11.9 MW), and to retire public bonds maturing in September – October 2027. These uses are intended to strengthen 360 Energy’s balance?sheet structure, extend debt maturities, and reduce refinancing risk in Argentina’s volatile macroeconomic environment. The investment will be structured as a senior syndicated loan package of up to USD 120 mln, including USD 40 mln in total financing from FMO.

Why do we want to fund this investment?

This transaction supports the expansion of utility-scale renewable energy generation in Argentina by financing the development and operation of 100% green solar PV assets and the associated interconnection, transmission, and battery storage infrastructure required to integrate additional renewable capacity into a constrained power grid. The investment also provides clear financial additionality by offering long-term USD financing of up to 10-year tenors, which remains scarce in Argentina, while improving the borrowers’ balance-sheet structure through the partial refinancing of short-term debt. The transaction is in line with FMO’s Energy and Climate Strategy, and is implemented through a multi-lender Development Finance Institution (DFI) structure supporting a well-established renewable energy platform.

What is the Environmental and Social categorization rationale?

The Environmental and Social (E&S) risk category for this project is assessed as Category B+. The applicable IFC Performance Standards (PS) anticipated to be triggered are PS1, PS2, PS3, PS4, and PS6. Key environmental and social risks and issues identified at this stage include: (i) potential changes in national labor legislation that could affect collective bargaining and other International Labor Organization (ILO) related obligations (contextual risk); (ii) the possible presence of natural habitat at the La Rioja IV (LRIV) site; (iii) limited information for the transmission lines at PSF Arrecifes and Realicó which are new lines to be built by the company and have dispatch priority; (iv) the Client’s limited experience with the implementation of the IFC PS; and (v) supply chain due diligence for solar panels and other key equipment. The Borrower has demonstrated willingness to meet IFC Performance Standards. An E&S Due Diligence is expected to clarify various issues, including types of habitat to be impacted, E&S management capacity and procurement due diligence capacity. An E&S Action Plan will be developed to cover potential gaps. This is likely to include biodiversity related-actions to ensure no net loss in case natural habitat is confirmed at La Rioja IV ,and beefing up IFC PS related capacity. Additionally, the Loan Agreement will include requirements for the Borrower to comply with ILO conventions and IFC PS, regardless of changes of national regulations. The risk of significant impacts on high conservation value (HCV) habitat is currently considered low, given the limited extent of potential natural habitat at the LRIV site and the Client’s ability to micro-site project infrastructure to avoid sensitive areas.