The Compañía Española de Financiación del Desarrollo, COFIDES, SA has come into an agreement with Argo Capital Partners to participate in a fund destined for the development of renewable energy projects in Chile with the participation of Spanish companies. The financial support provided by COFIDES will be $10m structured through the Fund for Foreign Investments (FIEX). Argo Capital Partners will manage the capital venture fund which is aimed at financing, through equity investments, companies that operate power generation plants using non-conventional renewable sources, with particular focus on biomass technologies, biogas and mini-hydro. The duration of this fund will be for a total of 10 years and will be targeting projects that help promote energy auto consumption, lowering the companies’ bill and contributing to regional development. The objective is to make the total endowment of the Fund of $8m.
Through this fund, COFIDES and Argo Capital Partners will work together on an internationalisation project for the first time. The fund manager is committed to renewable energy plants and invests in clean self-sufficiency energy for companies in Chile, Colombia and Mexico and has extensive experience in the capital venture industry and renewable energy.
This fund will finance the participation of prominent Spanish companies in these technologies, in the construction of renewable projects in Chile. A strong drag effect of engineering companies and service providers is also expected.
COFIDES Chairman CEO, Salvador Marín stressed the importance of creating this investment fund in renewable energy, saying, “Spanish companies are pioneers in this sector and with this fund they will have great opportunities for international expansion and growth in Chile“.
Fernando Arias, Managing Partner at Argo Capital Partners stated that “COFIDES support represents an important milestone for the fund, for the prestige that the support of an institution such as COFIDES brings. Through this fund, Argo will lead the technology transfer in renewable energy to Latin America“.