The proceeds will be used in the construction of its new renewable energy projects: the Tocota III Solar Project and La Elbita Wind Project.
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Buenos Aires, February 24, 2023. Genneia, the leading clean energy generation company in Argentina, announced that it obtained new corporate financing in the amount of 85 million dollars subject to a 10-year maturity term. The proceeds will be used in the construction of its new renewable energy projects: the Tocota III Solar Farm and La Elbita Wind Farm.
FMO -the Netherlands development bank- and FinDev -the Canadian development bank- will be the lenders. Following a broad and thorough environmental, social and governance (ESG) assessment, both institutions have decided to support these renewable energy projects as they are aligned with their sustainable development promotion goals.
This is the fourth financing granted by FMO to Genneia to continue developing its renewable energy business in Argentina. FMO had already provided funding to Genneia in 2018 and 2019 for the construction of the Villalonga I, Chubut Norte I and Vientos de Necochea wind power projects. Also, this new financing represents the first loan granted by FinDev Canada in Argentina and the first one granted to a renewable energy company worldwide. FinDev Canada was created in 2018 to promote, in developing countries, projects that demonstrate sustainable social and economic benefits for local communities
The international financing, with the support from FMO and FinDev, is a contribution from Genneia to the industry sustainability, as it enables offsetting the impact of the demand for foreign currency required for the import of components in such a complex year.
Carlos Palazón –CFO of Genneia– said: “The successful history of Genneia in the execution of renewable projects and its creditworthiness enable us to obtain international long-term financing. This agreement comprises a new strategy for Tocota III and La Elbita, and it reaffirms Genneia’s leadership in the execution of financing agreements with development banks in Argentina that have provided us with very long-term financing for over USD530 million since 2018.”
In turn, Bernardo Andrews –CEO of Genneia– said: “We take pride in that institutions such as FMO and FinDev continue supporting our projects focused on the energy transition, investing in wind and solar energy.”
The Tocota III Solar Project, with an installed capacity of 60 MW is located in an area extending over 300 hectares, 65 km to the north of Calingasta, Province of San Juan. The site has capacity for transmission to the electric grid and global horizontal irradiation of a considerable value, which constitute the best conditions for the construction of a project of this kind.
In turn, La Elbita Wind Farm (162 MW) will be located in an area extending over 1,464 hectares, approximately 50 km to the south of the city of Tandil and will have 36 cutting-edge wind turbines. Both projects will be intended to meet the demand for power of large industrial users, in the Renewable Energy Term Market.
Hence, Genneia will exceed 1 GW of installed capacity, an unprecedented milestone that will be achieved for the first time in the country.
As a result of its commitment to the renewable market, Genneia continues to position itself as the top-ranking company, with its generation accounting for 20% of solar and wind energy in the country in 2022. Hence, Genneia continues leading the industry with new projects, issuance of green bonds, and creation of carbon credits, and due to its proven creditworthiness and confidence, it is now at the forefront of the return of international financing from development banks to Argentina.