IDB Invest, a member of the Inter-American Development Bank (IDB) Group, provided a $5 million loan to Inmobiliaria Hondureña del Valle S.A (INHDELVA), a company belonging to the Kattan Group. The financing will be used for the installation a rooftop photovoltaic park of up to 6.4 MW that will help to sustainably meet part of the energy needs of the main free trade zones of the country, which generates around 4,000 jobs.
The operation has a tenor of 10 years and will help mitigate the emission of approximately 94,000 tons of CO2 over the next 25 years. This will allow INHDELVA to maintain its competitiveness in the midterm. The solar energy produced will cover 25 percent of the electricity currently consumed by the industrial park.
The growth of free trade zones and industrial parks is important for the economic development of the region. Currently, more than 300 national and international companies operate in the industrial parks of Honduras. The maquila sector is one of the largest consumers of electricity, so investments in energy consumption and energy efficiency will reduce production costs, improving the competitiveness of the sector.
The project also includes IDB Invest advisory services to mitigate climate change, including support in the evaluation of technical and economic offers. The financing structure has a $875,000 first loss guarantee from the Honduran Self-Supply Renewable Energy Guarantee Program, which is financed with blended finance resources from the Strategic Climate Fund (SCF) managed by IDB Invest. In addition, the participation of IDB Invest will help strengthen the environmental and social management of INHDELVA.
The operation potentially contributes to six 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), Reduced Inequalities (SDG 10), Responsible Production and Consumption (SDG 12) and Climate Action (SDG 13).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (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 enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of $12.4 billion under management and 342 clients in 24 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.
About Grupo Kattan
Kattan Group, founded in 1920, is a group of family businesses in Honduran capital traditionally focused on the manufacturing of clothing; exporting different brands over the years, such as Dickies, Van Heusen, Mens Wearhouse, Calvin Klein, Hanes, among others. They have expanded operations to real estate, construction, metalworking, energy, transportation and communication. They have a presence in Central America, the United States, Mexico, Peru. The company INHDELVA, S.A. from C.V. belonging to the Kattan Group operates a free industrial zone located in Choloma, Department of Cortés. It was founded in 1989 to offer industrial development solutions to domestic and foreign investors, and is currently one of the main manufacturing, processing and distribution centers in Honduras.