IFC commits US$145m to Mexican and Sri Lankan renewables projects

News | 11 August 2017


The International Finance Corporation (IFC) completed a US$100m seven-year financing package for Sri Lanka’s Commercial Bank on 9 August 2017.

Commercial Bank will use the funds to increase lending for renewable energy and energy efficiency projects in the country.

“IFC’s multi-faceted partnership has been instrumental as we develop a green-finance business to make financing more available to our clients that want to mitigate climate-change risks and contribute to a cleaner, more sustainable environment,” said Commercial Bank CEO, Jegan Durairatnam.

Ariane Di Iorio, IFC’s regional industry manager for the Financial Institutions Group in South Asia, said, “As Sri Lanka’s financial sector comes together to develop a sustainable finance roadmap for the sector, IFC is keen to engage with banks that support businesses that are greener, climate friendly, and socially inclusive.”

In a separate deal signed on 8 August 2017, IFC committed US$45m towards Mexico’s Solem I and Solem II solar energy parks.

Solem I and Solem II will have a combined capacity of 350MW when construction is completed in 2019.

A total of US$230m has been raised in non-recourse project finance debt for the project, with the remainder of the financing coming from the Inter-American Investment Corporation, Chinese Co-financing Fund for Latin America and the Caribbean, the Canadian Private Sector Climate Fund, the National Bank for Public Works and Services, the National Bank for Foreign Trade, and MUFG.

“We are very proud of having reached this ground-breaking milestone, confirming Cubico’s leadership in the renewable energy sector in Mexico. We now plan to consolidate our presence in the market supporting the government and selected local developers to achieve their clean energy ambitions in the country, as we are doing in the rest of the region,” said Ricardo Diaz, managing director and head of Americas at Cubico Sustainable Investments.

Gabriel Goldschmidt, Latin America and Caribbean infrastructure regional industry head for IFC, added, “Solem I and II are two of first renewable energy projects to reach financial close under a reformed power sector framework and as such exemplify the tangible results of successful structural reform coupled with transparency and competitive processes.” 

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