October 21 (Renewables Now) - The Colombian government and the local development bank Financiera de Desarrollo Nacional SA (FDN) have obtained guarantees for USD 81 million (EUR 72.5m) to facilitate the financing of renewable energy projects in the country.
A USD-41-million (EUR 36.7m) guarantee from the International Bank for Reconstruction and Development (IBRD) and USD 40 million guaranteed by the Clean Technology Fund (CTF) will enable FDN to promote new clean energy projects, the Colombian mining and energy ministry said Friday.
The guarantees will empower FDN to offer a wide range of financial instruments to improve the renewables projects' risk profiles, mitigate investment barriers and risks, attract long-term financing, as well as competition from local and international investors.
The Colombian government will back the guarantees for up to USD 53 million, through the National Council for Economic and Social Policy (CONPES).
(USD 1 = 0.894)