IDB Invest signed a $1 billion senior, unsecured A/B loan package to Empresas Públicas de Medellín (EPM) to build a 2,400 MW hydropower facility in the northern region of Antioquia, Colombia. Ituango will be the largest hydropower project in the country.

The Ituango hydropower plant will represent approximately 18 percent of the country’s total installed power capacity, and will generate approximately 13,900 GWh of renewable electricity per year.

The financing package comprises a $300 million A loan from the IDB Group, as well a $50 million co-loan from the IDB Invest-administered China Co-Financing Fund for Latin America and the Caribbean, and a $650 million B loan from international commercial banks and institutional investors (CDPQ, KFW IPEX, BNP Paribas, ICBC, Sumitomo Mitsui Banking Corporation, BBVA and Banco Santander). The financing offers a tenor of 12 years for the A loan, and a 12-year and an 8-year tranche for the B loan.

The transaction highlights the expansion of renewable energy in emerging markets and underscores IDB Invest’s commitment to mitigating climate change.

About IDB Invest

IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.6 billion under management and 330 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation. www.idbinvest.org

About EPM

EPM is a company with more than $15 billion in assets that was founded 62 years ago as a public utility services company. It is fully owned by the Municipality of Medellín. The EPM Group is the first in home public services in Colombia. Today it leads an international group with presence in Colombia, Guatemala, El Salvador, Panama, Chile and Mexico, in the sectors of electric power, natural gas, drinking water and basic sanitation.