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IaDB approves to fund Argentina’s energy sector for USD1.14 billion [free access]

July 27, 2022

The Inter-American Development Bank (IaDB) has approved a condition line-of-credit (LoC) worth USD1.14 billion for investment projects to stimulate the decarbonisation of the energy sector in Argentina. The latter will use the funds for transmission upgradation projects in different provinces, prioritised projects to cut greenhouse gas emissions by expanding transmission capacity for renewable energy, reducing technical losses, and decommissioning diesel-fired power plants.

 

As a part of LoC, IaDB has authorised initial funding of USD200 million, which will be further augmented by an additional EUR100 million from the Agence Française de Développement (AFD) or the French Development Agency and by another EUR100 million from the European Investment Bank (EIB). This initial funding will focus on expanding and upgradation of the transmission network and reducing greenhouse gas emissions of the energy industry.

 

The USD200 million loan has a repayment term of 25 years with a grace period of 5.5 years and an interest rate based on the Secured Overnight Financing Rate (SOFR).

 

This initiative aligns with the IaDB’s Vision 2025—Reinvest in the Americas: A Decade of Opportunities, in which IaDB focuses on recovery and inclusive growth in Latin America and the Caribbean.

 

(EUR1=USD1.02)