IDB Invest and Enel Join Forces to Promote Electromobility in Colombia
- The funds will allow Bogota citizens to have a more modern electric bus network while reducing CO2 emissions.
- This is IDB Invest’s first deal in electromobility
IDB Invest, Enel X and InfraBridge carried out a project to promote electromobility in the city of Bogota, Colombia. The financing consists of two senior loans provided to companies known as special purpose vehicles created for the project by Enel X, an Enel Colombia business line, and InfraBridge. The loans exceed 610,000 million Colombian pesos (approximately $134 million).
The project financed 401 electric buses with low carbon emissions that operate along 10 routes in the districts of Fontibón and Usme, in the city of Bogota, under a concessional modality.
IDB Invest, as joint lead bookrunner and joint lead arranger, together with the UK Sustainable Infrastructure Program (UK SIP), underwrote 50% of the total loans, while BNP Paribas contributed the remaining amount to complete the financial closing of the operation. UK SIP provided a total amount equivalent to 90 billion Colombian pesos (approximately US$20 million) of blended financing.
These funds will support climate change mitigation, achieving an estimated reduction in CO2 emissions of around 237,464 tons of CO2, which includes 3.1 tons of particle pollution and 4,663 tons of nitrogen oxide.
The financing from IDB Invest, UK SIP and BNP Paribas accelerates the adoption of electromobility in public transport in Latin America and the Caribbean by supporting a long-term project financing model and private sector participation in financing this new asset class.
Additionally, the change of the consumer buses fleet from diesel to electricity will mean a significant reduction in energy expenditure, roughly 75% of the total cost. It will also imply a modernization of the bus network providing a better travel experience, with access to Wi-Fi, USB for cell phone charging, and accessible platforms for people with disabilities, among others.
IDB Invest will finance 100% of the cost of technical advisory services, which will improve the life of the batteries and manage their secondary use. This is IDB Invest’s first deal in electromobility and reflects its firm commitment to promoting sustainable projects, supporting the private sector by attracting institutional investors, and advancing its mandate to improve the lives of people in the region.
The project is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Industry, Innovation and Infrastructure (SDG 9), Sustainable Cities and Communities (SDG 11), Climate Action (SDG 13) and Partnership for the Goals (SDG 17).
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 $15.3 billion in asset management and 375 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 UK SIP
The UK Sustainable Infrastructure Program (UK SIP) contributes up to £177.5 million from the UK's commitment to international climate finance to support recipient countries in their emissions reduction commitments mobilizing private capital for investments in sustainable infrastructure. The UK SIP provides resources for technical assistance to the public and private sectors, as well as investments with mixed financing in Brazil, Colombia, Mexico and Peru.
About Enel X Global Retail
In Colombia, Enel X is Enel Colombia’s business line that has positioned itself as a benchmark and leader in the development of massive electric mobility projects, small-scale distributed generation (1.9 MW) for industry, assistance for households and the modernization of public lighting in Bogotá. In addition, it has a robust portfolio for the optimization and self-generation of electricity, premium energy efficiency solutions with competitive and flexible offers. Enel X’s objective is to help customers in cities, companies and homes to draw up their own energy roadmap.