The International Finance Corporation, a member of the World Bank Group, has approved a corporate loan of up to US$600 million for ENGIE Energía Perú, one of Peru’s largest power generation companies. The financing will advance the development of renewable energy projects and accelerate the country’s transition toward a low-carbon economy.
The first tranche, worth US$120 million, is structured as a Green and Sustainability-Linked Loan — the first such arrangement between IFC and ENGIE Perú. Aligned with standards set by the Loan Markets Association and the International Capital Market Association, this instrument marks a significant milestone in their collaboration to promote innovative energy solutions that deliver economic, social, and environmental benefits.
Proceeds from the loan will be directed toward three major initiatives: construction of the Central Expansión Solar Intipampa plant in Moquegua (51.7 MW), refinancing of the Duna and Huambos wind farms in Cajamarca (36.8 MW), and partial financing of the Chilca-BESS battery energy storage system (26.5 MW) at the Chilca Thermal Power Plant.
Cheryl Edleson, IFC’s Director for Infrastructure, Energy, and Mining in Europe, Latin America, and the Caribbean, stated, “This green and sustainability-linked loan reflects our commitment to developing energy solutions that not only drive economic growth but also promote job creation, climate resilience, and access to clean energy. This is a bold step toward a cleaner, more inclusive energy future for Peru”
El Mehdi Ben Maalla, Country Manager and CEO of ENGIE Energía Perú, mentioned, “The loan granted by IFC enables us to continue expanding our portfolio of renewable energy projects while meeting the highest local and international standards in risk management, environmental and social impact, resource efficiency, health, and safety. It is a clear sign of trust in our vision for sustainable growth.”
The loan is linked to three key performance indicators aimed at delivering measurable impact. These include increasing the proportion of renewable energy in ENGIE Perú’s total installed capacity, developing and implementing climate adaptation plans across all company facilities, and increasing the representation of women in management roles to advance gender equity in the energy sector.
Through this financing, IFC is reinforcing ENGIE Energía Perú’s leadership in renewable energy, supporting a development pipeline of over 1,600 MW. Currently, renewable sources already account for 30% of the company’s total generation output, positioning it as a key driver of Peru’s clean energy transition.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
