Montreal, QC—February 27, 2023: FinDev Canada has taken another important step toward its goal of supporting climate action by providing a USD 40 million loan to Genneia, an independent power producer based in Argentina. FinDev Canada’s first loan in the sustainable infrastructure sector will support Argentina’s efforts to increase renewable energy generation and achieve its climate commitments under the Paris Agreement. FinDev Canada is investing alongside the Dutch entrepreneurial development bank FMO.
This 10-year loan will enable Genneia to add 200 MW of renewable energy generation capacity in Argentina by constructing two greenfield renewable energy projects, one solar and the other wind. Genneia is the leading renewable power generation company in Argentina operating a diverse portfolio of power plants across the country, managing 24% of the country's installed wind energy capacity and 8% of its installed solar energy.
“Climate action is a strategic objective for FinDev Canada, as we recognize the urgency of tackling the climate change threat from all fronts” said Paulo Martelli, Chief Investment Officer of FinDev Canada. “This loan to Genneia supports mitigation efforts and contributes to Argentina’s successful transition towards renewable energy sources.”
“In the last nine years Genneia has invested more than one billion US dollars on renewable energy projects,” said Carlos Palazón, CFO of Genneia. “This loan will help us in our mission to build and supply our country with sustainable energy while reducing our environmental impact.”
The loan also qualifies for the 2X Challenge, based on Genneia’s commitments towards increasing women’s representation in the workforce.
About FinDev Canada
FinDev Canada is Canada’s bilateral development finance institution. It supports development through the private sector in emerging markets and developing economies with financing, investment, blended finance solutions and technical assistance. It aims to promote sustainable and inclusive growth with a focus on climate action, women’s economic empowerment, and market development in alignment with the Sustainable Development Goals and Paris Agreement commitments. FinDev Canada is a Canadian Crown corporation and subsidiary of Export Development Canada (EDC).
Genneia is the leading renewable power generation company in Argentina. The company is primarily engaged in the generation of electrical power from both renewable (wind and solar power) and conventional (thermal power) sources. As of December 2022, total installed capacity was 1,230 MW (866 MW of renewable and 363 MW of thermal). Genneia has delivered a USD 1 billion renewable energy expansion plan of 14 projects for 706MW in 3.5 years.
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track-record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 12.1 billion spanning over 85 countries, FMO is one of the larger bilateral private sector developments banks globally. For more information: please visit fmo.nl
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