The operation promotes sustainable growth for the country and is IDB Invest's first deal in Barbados.
IDB Invest, a member of the IDB Group, approved a revolving credit facility of up to US$2 million to Caribbean LED Lighting Inc. (CLL) in Barbados. The facility will be used to expand the company’s operations within the Caribbean region and to finance its working capital needs.
This is the first transaction for IDB Invest in Barbados and reinforces IDB Invest’s commitment to supporting innovative and sustainable solutions in the Caribbean region, which is especially relevant as the country addresses COVID-19. This new credit facility will facilitate access to finance for the private sector, reduce Barbados’ dependence on fossil fuels and promote private sector engagement that encourages greater productivity and resilient infrastructure investment.
Through this financing, the company is expected to increase the number of LED streetlights installed in the CARICOM region, and reduce streetlight energy consumption and CO2 emissions. In 2019, CLL reduced 1,334 tons of CO2 emissions and approximately half the electricity used to power the streetlights (4.9 GWh/year). These numbers would increase progressively in the next years and CLL is expected to continue growing its regional footprint by installing more LED streetlights in more islands in the Caribbean.
LED lights have important advantages when compared to other available lighting options, which makes them suitable for places where replacing light bulbs is expensive, inconvenient, or difficult. LED lights have a longer lifespan, which means lower maintenance costs. They also have higher energy efficiency, reducing energy consumption by about 40 to 60 percent. This is relevant especially in a region where most of the electricity is produced from fossil fuels. Furthermore, LED lights emit almost no heat while traditional bulbs, such as incandescent, convert more than 90 percent of the total energy used to power them directly into heat.
This deal potentially contributes to three of the United Nations Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7), Reduced Inequalities (SDG 10) 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 US$12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Caribbean LED Lighting Company
Caribbean LED Lighting Inc is a Barbados entity that was established in 2011. Initially, the Company manufactured LED lights for industrial, commercial, and residential clients. In 2014, the company entered into the LED streetlight segment and since then Caribbean LED Lighting has been providing power and lighting companies in the Caribbean with LED streetlights. The company manufactures its products at its factory in Lower Estate Saint Michael, Barbados and distributes its products across the Caribbean region. In 2019 the company also expanded its portfolio and now also distributes decorative lighting. Caribbean LED Lighting Inc. is an environmentally friendly company by the nature of its business and practices. The company has invested in a bulb eater machine which is used for the disposal of fluorescent and halogen bulbs. The Company is a member of the HADCO Group of Companies.