French development finance institution Proparco and Banco Santander have invested into Grupo Enhol’s 467MW Illa solar PV project, which is currently under development in southern Peru.
The investment takes the form of a US$40 million senior loan, and is part of a US$289 million financing package, which includes a US$250 million mini-perm facility underwritten by Santander, Proparco and a number of global development financiers, such as Spain’s Instituto de Crédito Oficial E.P.E. (ICO). The mini-perm structure comes with a seven-year maturity and Proparco says that the finance will support the Illa project through construction and operational maturity.
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“This transaction demonstrates the value of combining the structuring and syndication capabilities of private financial institutions with the long-term financing, environmental and social expertise and risk-sharing capacity of development finance institutions,” said Proparco regional director Stanislas De La Riviere.
Grupo Enhol CFO Roberto Aguado added that the project will be Peru’s largest solar project when it begins commercial operation, which is currently scheduled for next year. The company added that the project is expected to account for 2.5% of Peru’s national electricity supply, and the news follows a number of utility-scale project advancements in the country. Earlier this year, Spanish independent power producer (IPP) Zelestra started construction at, and then announced additional financing for, a 242MW solar project.
This growth follows the publication of a report from trade body SolarPower Europe last year, in which it described the Latin American solar sector as standing at a “pivotal” moment. The report said that Peru and Colombia are “entering a new phase of energy diversification,” and Peru has already announced plans to expand its solar and wind sectors to account for 20% of domestic electricity generation by 2030, up from less than 10% in 2024.
