WASHINGTON, D.C. — The Inter-American Development Bank has significantly increased its lending for private sector projects related to renewable energy efficiency.
Last year alone, the IDB says it approved US$736 million in long-term financing for green investments in Latin America and the Caribbean, with a similar amount anticipated for 2012. By comparison, IDB lent $663 million total in similar investments between 2000 and 2010.
“The IDB provides access to tailored long-term financing not readily available in local capital markets for these types of projects,” says Hans Schulz, head of IDB’s structured and corporate finance department.
The bank says the increased lending is partially reflective of changing needs from its 26 borrowing members and partially a strategic shift following its own capital increase. One of the goals set in IDB’s capital increase agreement calls for 25% of the bank’s lending portfolio to support climate change and environmentally-friendly initiatives, an IDB release says.
Among IDB’s recent hydro-related investments are 54-MW Peligre, 50-MW Centroamerica, two Furnas Centrais Eletricas S.A. projects, the 155-MW La Confluencia facility, and 306-MW Reventazon. IDB has also invested in the Emerging Energy Latin America Fund II.