CAF approved USD 300 million A/B loan to Pan American Energy, Argentina Branch, for green projects and energy security

The Board of Directors of CAF—development bank of Latin America—approved a USD 300 million loan for Pan American Energy, Argentina Branch (PAE), under the A/B modality, in which the institution will finance a USD 30 million Tranche A and a USD 270 million Tranche B, thus mobilizing private capital resources.

The operation aims to support part of PAE’s investment plan for the coming years in Argentina, including notably interventions to support climate change mitigation, contributions to Argentina’s energy security and strengthening the productive fabric of SMEs in the PAE value chain.

“The approved loan is part of a broader intervention approach as part of CAF’s energy transition support strategy. The issue of climate change and economic recovery must be tackled from all fronts, supporting the private sector in mobilizing funds that help meet this objective,” said CAF executive president Sergio Díaz-Granados.

PAE has been a CAF client since the institution started operations in this country, with an excellent history of joint interventions. Regarding credits, the link began in 2009 with the first loan, strengthening the relation in 2014 with an A/B loan for USD 237.5 million. With the most recent loan, the company became one of the corporate clients with the most transactional history with CAF’s Vice Presidency of the Private Sector.