IDB Invest signed a $1 billion senior, unsecured A/B loan package to Empresas Públicas de Medellín (EPM) to build a 2,400 MW hydropower facility in the northern region of Antioquia, Colombia. Ituango will be the largest hydropower project in the country.
The Ituango hydropower plant will represent approximately 18 percent of the country’s total installed power capacity, and will generate approximately 13,900 GWh of renewable electricity per year.
The financing package comprises a $300 million A loan from the IDB Group, as well a $50 million co-loan from the IDB Invest-administered China Co-Financing Fund for Latin America and the Caribbean, and a $650 million B loan from international commercial banks and institutional investors (CDPQ, KFW IPEX, BNP Paribas, ICBC, Sumitomo Mitsui Banking Corporation, BBVA and Banco Santander). The financing offers a tenor of 12 years for the A loan, and a 12-year and an 8-year tranche for the B loan.
The transaction highlights the expansion of renewable energy in emerging markets and underscores IDB Invest’s commitment to mitigating climate change.