January 8 (Renewables Now) - IDB Invest, the private sector institution of the Inter-American Development Bank (IDB), has signed a USD-1-billion (EUR 831m) loan to develop 2.4 GW of hydropower in Colombia.
The senior unsecured A/B loan package was given to local Empresas Publicas de Medellin (EPM) to build the Ituango hydropower plant (HPP) in the northern region of Antioquia, IDB Invest said.
Ituango will be the largest HPP in the country, representing around 18% of Colombia’s total installed power capacity. Its annual power output has been estimated at 13,900 GWh.
The financing package is comprised of a USD-300-million A loan from the IDB Group, as well a USD-50-million co-loan from the IDB Invest-administered China Co-Financing Fund for Latin America and the Caribbean. It also includes a USD-650-million B loan from international commercial banks and institutional investors (CDPQ, KFW IPEX, BNP Paribas, ICBC, Sumitomo Mitsui Banking Corporation, BBVA and Banco Santander). Overall, the financing offers a 12-year tenor for the A loan, and a 8-year to 12-year tranche for the B loan, IDB noted.
(USD 1 = EUR 0.831)