Luxembourg, 23 November 2015 – GCPF has signed a facility agreement with Promerica Costa Rica for a USD 20m green financing facility with a tenor of ten years. The funding will primarily be used to finance energy efficiency projects in transportation and industry.
Promerica Costa Rica has a successful history of green lending in Costa Rica, and is one of the most experienced regional banks in this field. However, the bank required more long-term funding in order to be able to fund energy efficiency and renewable energy projects with long payback periods.
This is the first GCPF transaction in Costa Rica. While Costa Rica is a recognized leader in implementing policies favorable to renewable energy and has a very low polluting electricity sector, the country still consumes large amount of fossil fuels for transportation and industry. This is why GCPF funding is primarily being used to improve energy efficiency and use of renewable energy in these sectors. GCPF funding will be mainly used to finance the fuel conversion of private and public bus fleets, which use less diesel and emit less CO2, solar panels, solar water heaters, industrial boilers and biomass projects.
Federico Chavarria, Vice President of Promerica Costa Rica, commented on the agreement, “Expanding our green energy portfolio is a key part of our strategy, and we see much potential for growth in this area. Through our partnership with GCPF, we are able to increase our investment activities in this field.“
Claudia Arce, chairperson of the GCPF Board, explained, “Promerica Costa Rica is one of the most experienced banks that we have worked with, in terms of green lending. GCPF aims to work through financial institutions both with and without experience in green lending to promote the uptake of energy efficiency and renewable energy across the globe.”
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