March 27 (Renewables Now) - The Japan International Cooperation Agency (JICA) signed an up-to-USD-100-million (EUR 90.9m) loan agreement to support the solar photovoltaic (PV) projects of Mexican energy company Infraestructura Energetica Nova SAB de CV, better known as IEnova.
This loan is part of a package arranged by the International Finance Corporation (IFC) and it is based on the May 2017 memorandum of understanding (MoU) signed between the parties to facilitate private sector co-financing in developing countries.
According to a deal signed in November 2019, each of the IFC and the North American Development Bank (NADB) committed to lend USD 100 million to IEnova.
The transaction is not only JICA’s first project in Mexico since the country resumed private sector investment financing, but also its first co-financing project with the NADB and its first loan under the Green Loan Principles.
Currently, Mexico has a target to increase the share of renewable energy to 35% by 2024 and 60% by 2050. IEnova's renewables portfolio reached 658 MW last year.
(USD 1 = EUR 0.909)