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The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with ACCIONA, a leading global infrastructure company, to drive sustainable infrastructure development in emerging markets. This collaboration focuses on two key initiatives: decarbonizing Peru’s energy system and improving public transportation in Brazil. In Peru, IFC is supporting three of ACCIONA’s power transmission projects aimed at strengthening the national grid and integrating renewable energy sources. These projects, named Reque-Nueva Carhuaquero (220 kV), Nueva Tumbes (220/60 kV), and Ica-Poroma (220 kV), are vital for reducing Peru’s dependence on fossil fuels, increasing the share of renewable energy, and meeting the country’s growing energy demands. In Brazil, the partnership is contributing to the development of São Paulo’s new Metro Line 6, one of the largest public-private partnerships in the infrastructure sector. Once completed, this metro line will connect 600,000 daily passengers from low-income suburbs to the city center, drastically reducing travel times from 1.5 hours to just 23 minutes each way and improving access to essential services such as education and healthcare. The partnership also includes a $600 million green and sustainability-linked loan (SLL) for ACCIONA Financiación Filiales, the company’s financing vehicle. The first tranche, totaling $380 million, was signed on December 23 and comprises a $145 million IFC A/B Loan and €235 million in parallel loans from European Development Finance Institutions, including DEG, FMO, and Proparco. These funds will support the projects in Peru and Brazil, while the remaining $220 million will be allocated to other sustainable infrastructure projects in emerging markets. This strategic partnership underscores IFC and ACCIONA’s commitment to advancing sustainable development and addressing critical infrastructure challenges in developing regions.The loan incorporates a green use of proceeds and a sustainability-linked loan (SLL) structure, incentivizing ACCIONA to increase capital expenditures aligned with the EU taxonomy. Additionally, it includes a local impact indicator focused on delivering essential services to communities in Brazil and Peru. These services include connecting households and communities to solar energy, ensuring water supply, and installing photovoltaic systems. This structure reflects ACCIONA’s commitment to its “Dual Impact” philosophy, as outlined in its Sustainable Impact Financing Framework. This collaboration aligns with the United Nations’ Sustainable Development Goals (SDGs), particularly Goal 6, which promotes clean water and sanitation; Goal 7, which ensures access to affordable, reliable, sustainable, and modern energy for all; and Goal 13, which supports climate action. IFC, a global leader in sustainability-linked finance, has facilitated $1.9 trillion in SLLs and bonds worldwide since 2017, accounting for 25% of the sustainable finance market. Earlier this year, IFC expanded its partnership with ACCIONA by signing an agreement with ACCIONA & Nordex Green Hydrogen, a joint venture with Nordex, to conduct an early-stage bankability review of the Alto dos Ventos green hydrogen project in Brazil. This initiative further highlights the shared commitment of IFC and ACCIONA to advancing sustainable development and innovative climate solutions. Alfonso Garcia Mora, IFC Vice President, Europe, Latin America and the Caribbean, stated “Supporting global clients to expand beyond their borders while driving sustainability is at the core of our strategy. Our partnership with Acciona will help decarbonize Peru’s energy sector and improve public transportation in Brazil, advancing resilience and sustainable development in the region.” Jose Manuel Entrecanales, chairman and CEO of ACCIONA, also added “We are proud to partner with the IFC to enhance the positive impact of our projects at the local level. Together, we are driving progress by providing communities with essential electricity and water services. This agreement exemplifies the effectiveness of collaborative efforts and our shared commitment to sustainability.” The International Finance Corporation (IFC) plays a vital role in private sector development by driving investments in inclusive and resilient infrastructure. It focuses on enabling private risk capital to help partners expand renewable energy solutions and transition away from fossil fuels. Through its investments in sustainable infrastructure, IFC delivers innovative solutions aimed at connecting communities, providing affordable and reliable energy, and creating equitable job opportunities, all while fostering economic growth. ACCIONA is deeply committed to sustainability and innovation, with an emphasis on reducing greenhouse gas emissions and building resilient infrastructure. This partnership with IFC builds on their successful collaborations in countries such as Mexico, Egypt, and Croatia and further supports ongoing green hydrogen projects in Latin America. Together, IFC and ACCIONA are advancing global efforts to address critical challenges in sustainability and infrastructure development. |
