IIC finances Solem solar photovoltaic plant in Mexico
The Inter-American Investment Corporation (IIC), acting on behalf of the Inter-American Development Bank (IDB) Group, has signed a US$75 million loan package to finance the Solem PV project, which consists of the design, construction and operation of two adjoining solar PV plants with a combined installed capacity of 350 MWp. The project is sponsored by Cubico Sustainable Investments Limited and Alten R.E. Developments America B.V. in the State of Aguascalientes, Mexico.
The project will be the largest solar power plant in Latin America and among the first renewable energy project to reach financial close under the new long-term auction (“Subasta de Largo Plazo” – SLP) framework following the 2014 Mexican energy reform. It will supply approximately 800GWh of energy per year and reduce the Mexico’s carbon footprint by avoiding greenhouse emissions equivalent to approximately 340,000 tons CO2 per year.
The project will connect to the Mexican national grid and contribute to the expansion and diversification of Mexico’s energy matrix and provide renewable energy at affordable prices. Of the $75 million in financing provided by the IDB Group 36% is from the IDB, 24% from the IIC, 27% from the Canadian Climate Fund for the Private Sector in the Americas (C2F) and 13% from China Co-Financing Fund for Latin America and the Caribbean. The tenor of the IDB Group financing is 20.4 years.
About the Inter-American Investment Corporation (IIC)
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank Group (IDB Group), is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. The IIC finances sustainable enterprises and projects to achieve financial results that maximize social and environmental development for the region. With a current portfolio of $11 billion under management and 350 clients in 21 countries, the IIC works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.