• The Huemul portfolio consists of three wind farms and two photovoltaic solar plants with a total installed capacity of 630 MW

IDB Invest, a member of the IDB Group, provided a $541 million financing package, with a tenor of 18.5 years, to Huemul Energía SpA, a subsidiary of the Irish multinational developer Mainstream Renewable Power. The funds will be used to build five renewable energy projects, three wind farms and two photovoltaic solar plants, distributed across Chile. The five projects have a total installed power of 630 MW.

The energy produced by these five projects will contribute to the expansion and diversification of the Chilean energy matrix using 100% renewable sources. In addition, the joint generation of the projects will increase the current output of solar and wind energy by 12 percent. This deal will contribute to curbing the effects of climate change by reducing greenhouse gas emissions, avoiding the equivalent of approximately 14.8 million tons of CO2 during the 20-year operational life of the projects.

The three wind projects that make up the Huemul portfolio have an installed capacity of 425.2 MW and are divided into: Ckani (109.2 MW), Llanos del Viento (160 MW) and Puelche Sur (156 MW), the first two located in the Antofagasta region and the third in the Los Lagos region. In addition, two photovoltaic solar plants are also included, with a total installed capacity of 205 MW: the Pampa Tigre project (100 MW), in Antofagasta, and the Valle Escondido project (105 MW), in the Atacama region.

The joint generation strategy of the five projects constitutes a novel implementation, combining the complementarity of solar and wind resources in a single energy portfolio. This provides renewable energy in an optimized way throughout the day, making the renewable energies more reliable for the energy matrix. The Huemul portfolio projects will enable a competitive response to the growing demand for energy in Chile and, at the same time, will reduce the system's dependence on fossil power generation alternatives.

The IDB Invest financing package consists of a $200 million loan from IDB Invest and the mobilization of $341 million from four commercial banks: DNB Bank ASA, CaixaBank S.A., KFW IPEX-Bank GMBH and MUFG Bank LTD.

Through this transaction, IDB Invest continues to play a significant role in promoting and maintaining investments in renewable energy under adequate financing conditions, especially in the context of the economic crisis generated by the COVID-19 pandemic.

The project includes voluntary commitments by Mainstream Renewable Power with the indigenous communities living in the surrounding areas of each of the five projects. These commitments include the annual allocation of local investment funds during the life of the projects to promote cultural, educational and environmental initiatives in each community.

The deal potentially contributes to four of the United Nations Sustainable Development Goals: Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Climate Action (SDG 13).

About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of USD 13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About Mainstream Renewable Power
In 2016, Mainstream Renewable Power, through its Chilean company, Andes Mainstream, was the biggest winner in the largest technology-neutral electricity auction in Chile, winning 27 percent of the total energy allocated. As a result, Mainstream was awarded contracts to supply 3,366 GWh / y of energy, for a period of 20 years, commencing supply from January 2021, at rates denominated in US dollars and indexed. Previously, Mainstream and IDB Invest have worked on the development of 332 MW of installed capacity in 3 wind farms, developed through Aela Energía, a joint venture between Mainstream and Actis, having delivered in 2014 the first of the projects that make up said portfolio.