IFC Closes $300 MM Financing for Largest Wind Farm in Central America
IFC announced that it completed a $300 million financing package for the construction of Laudato Si wind park (formerly known as Phase II and Phase III of the Penonome wind power plant), the largest wind farm in Central America. Check out the awesome time-lapse clip showing transport of WTGs from China to Panama and erection at the site. [Shortlink: http://wp.me/p27qSt-HE]
According to the IFC, once operational, the 86 wind turbines with an installed capacity of 215 MW are expected to generate 448 GWh of energy per year. This is roughly equivalent to 5 percent of Panama's total energy demand.
Prizma assisted UEP Penonomé II, SA (UEPII), a company created to operate this project in Panama, with the alignment of its environmental and social aspects with the IFC Environmental and Social Performance Standards and Equator Principles. The Equator Principles is a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects and is primarily intended to provide a minimum standard for due diligence to support responsible risk decision-making. Currently, 80 Equator Principles Financial Institutions (EPFIs) in 34 countries have officially adopted the Equator Principles. Prizma provides training to developers, financial institutions and consultants on the application of these environmental and social standards.
IFC's financing package consists of a US$ 80 million senior loan from IFC’s own account, a US$ 60 million senior loan from IFC’s Managed Co-Lending Portfolio Program, a new loan syndication platform that offers institutional investors the ability to passively participate in IFC’s future senior loan portfolio, and US$ 144 million in IFC’s syndicated senior loans from other development finance institutions and Panamanian banks. In addition, IFC will provide a US$ 16 million subordinated loan from its own account.