• Both projects reinforce the roadmap for the Just Energy Transition in the country.

The project will be financed with a senior secured loan for a total value close to COP 656 billion to Solarpack. IDB Invest has coordinated a total contribution of COP 457 billion, mobilizing COP 93 billion from the United Kingdom Sustainable Infrastructure Program (UK SIP) and another COP 85 billion from another international partner. The loan is complemented by Bancolombia with a contribution of COP 199 billion.

The purpose of this loan will be to support the development of La Mata solar park (108MWp of installed capacity) in the municipality of La Gloria (Cesar), and La Unión (144MWp of installed capacity) in the municipality of Montería (Córdoba). This will be one of the largest solar plant financing packages in the country to date.

This carbon-free renewable generation project will improve Colombia’s energy matrix, in line with plans to boost the share of photovoltaic projects in country’s generation mix.

With this deal, Solarpack moves forward with its corporate purpose, accelerating the transition towards clean and affordable energy for all, reaching almost 430 MW of installed capacity in solar projects in Chile, Peru and Colombia.

Both parks are expected to be operational by mid-2023, reaching a combined renewable energy production of around 440GWh per year, equivalent to the annual consumption of more than 230,000 homes in Colombia*.

On the other hand, Bancolombia reinforces its commitment to mobilize resources towards activities that incorporate environmental, social and governance factors and decarbonization of the portfolio, as part of its sustainability strategy.

Likewise, for IDB Invest this deal reinforces its commitment to support the private sector towards an economy with less environmental impact and more aware of the real challenges of the region in terms of decarbonization.

The UK SIP will provide local currency long-term financing completing the funding gap and extending the tenor of the facility beyond the Power Purchase Agreements (the “PPAs”) term  for projects awarded in the renewable energy tenders held by the Government of Colombia

This deal is expected to contribute to ten United Nations Sustainable Development Goals (SDGs): 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 $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 Bancolombia

Bancolombia is a financial group with a 147-year history, and with a presence in Colombia and Central America. It offers its portfolio of financial and non-financial products and services to more than 25 million customers. It provides, among others, commercial and consumer banking services, stock brokerage, financial leasing, factoring, fiduciary services, asset management, private banking and investment banking. It’s committed to promoting sustainable development to achieve the well-being of all, seeking to impact the communities in the countries in which it operates.

About Solarpack

Solarpack is a Spanish multinational company specialized in the development, construction and operation of large-scale photovoltaic solar projects with a presence in Europe, North America, Latin America, Asia and Africa. Solarpack is the fifth most sustainable renewable energy company in the world according to Sustainalytics, with 17 years of experience. The company has 670 MW in operation and its goal is to reach 4.6 GW by 2026.

About UK SIP

The UK Sustainable Infrastructure Program (UK SIP) is providing up to a £177.5m from the UK’s International Climate Finance to support partner countries to achieve their emission reduction commitments by mobilizing private investment into low carbon infrastructure. The program provides public and private sector technical assistance and blended finance investments in Brazil, Colombia, Mexico, and Peru.