IEnova takes long-term loan from JICA

IEnova takes long-term loan from JICA

Loans Project & Infrastructure Finance Debt Energy Renewable Solar Mexico United States Japan Asia

IEnova, the Mexican subsidiary of the US company Sempra Energy, said on Thursday that it secured $100 million in long-term financing from the Japan International Cooperation Agency (JICA) to fund solar power investments.

The 15-year loan adds to the $200 million in credit that IEnova received in November last year from the International Finance Corporation (IFC) and the North American Development Bank (NADB) to finance four solar projects, the Mexico City-based company said in a press release.

The JICA loan is the first private-sector financing that the Japanese development agency has granted in Mexico since 2012. It is also the agency's first co-investment with the NADB and its first financing under the Green Loan Principles, according to IEnova.

JICA and the IFC signed an agreement in May 2017 to co-finance projects by the private sector in developing countries.

In IEnova's solar portfolio, the company has started operations at the 110 MW Pima plant after roughly $115 million in investments. It is also building the Don Diego project along with the 40 MW Rumorosa plant for $50 million and the 100 MW Tepezal√° plant for $100 million.