CAF, BICE, and Banco de la Ciudad finance Cafayate Solar Plant to promote the production of cleaner energy in Argentina
CAF, through a syndicated loan, supported the Cafayate Solar Plant project developed by Canadian Solar Inc., which promotes the use of renewable energy sources, provides greater diversification of the power grid in Argentina, supports the expansion of the current power, and contributes to mitigating climate change by reducing the consumption of fossil fuels and greenhouse gas emissions.
In order to support the initiative to tap renewable resources in Argentina and promote private investment as a mechanism to move resources to undertake major works, CAF -development bank of Latin America- has granted a long-term, syndicated loan, along with Banco BICE and Banco Ciudad, which accounted for a total amount of USD 50 million for the construction of the Cafayate Solar Plant.
The USD-50-million financing package, led by CAF, consists of a CAF's loan of
USD 30 million, a USD 15 million loan from Banco BICE, both with a 15-year term, and a USD 5 million loan from Banco de la Ciudad with a 10-year term. CAF and Canadian Solar share the goal of getting USD 75 million in financing, and expect an additional USD 25 million in long-term senior financing, which should be closed at the beginning of 2019. This operation once again reflects CAF’s catalyst role in the region.
Thus, CAF supports the RenovAr Program, focused on expanding the use of renewable energy and strengthening energy security, which is expected to increase power generation through the use of the country’s vast resources. The Cafayate Solar Plant will inject about 240 GWh of energy into the Argentine power system each year, contributing to the diversification of a cleaner energy grid.
"This project will allow the Argentina electric power system to have a greater energy supply, thus providing security and stability. This will provide for a more efficient and planned development of the country’s productive sector. In addition, CAF plays a strategic role encouraging other local financial institutions to also join this initiative as creditors," said Luis Carranza, Executive President and CEO of CAF.
In turn, Pablo García, BICE Executive Vice President, added: “In line with government policies for the promotion of renewable energy, we support the financing of the projects presented in the RenovAr Program. This project, located in the province of Salta, is a clear example of the work we have been doing from BICE to promote a power grid under a federal and sustainable nature."
The Cafayate photovoltaic plant is a power plant with a nominal capacity of 80 MW, located in the province of Salta in Argentina. This project is part of the RenovAr Program 1.5, which includes 30 renewable energy projects underway with a total of 1,281 MW awarded by the Argentine government in order to reorganize the country's power grid, thus providing greater strength and making use of the potential of renewable energy generation.
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