IDB to back renewable energy development in Mexico with USD-70m loan

Dec 1, 2011 - The Inter-American Development Bank (IDB) said it would provide a USD-70-million (EUR 52m) concessional loan to Mexico to support the development of renewable energy projects in the country.

The loan, combined with funds from the Clean Technology Fund and Mexico's lender Nacional Financiera (MXK:NAFTRAC) and an existing IDB conditional line of credit, brings total support for green energy projects to USD 210 million. IDB said that the funding programme would grant direct loans to companies and organisations promoting renewable energy generation and credit lines to cover cash flow deficits.

The funding programme seeks to attract over USD 1.5 billion in additional funds from other entities, seen to eventually enable the construction of renewable energy installations worth USD 2.5 billion. The funds are expected to back at least 10 green energy projects, including wind and small hydro power plants, IDB said. The aim is to expand Mexico's clean energy capacity by 1,000 MW.

The loan from IDB has a term of 20 years with a grace period of 10 years. It has a reduced interest rate, the lender said.

(USD 1.0 = EUR 0.743)

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