250.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	250.0
Equity

* These investment figures are indicative

(A) PROJECT OUTCOMES. (A1) Quality of Power. This investment will fund three transmission projects in Peru which will add 224km of new high-voltage lines and increase substation capacity. As such, the investment will contribute to strengthen the national grid and support a higher penetration of renewables in a country that is working to decarbonize its energy matrix - still heavily reliant on fossil fuels (38% of electricity production in 2021). One of the projects is southern Peru - a region with strong renewable resources that is experiencing curtailment. The other two projects are located in the north – a low-income isolated region that still relies on diesel for grid stability - and they will allow an increased flow of energy in the Peru-Ecuador interconnection system. The main expected contribution is the improved quality of power supply by adding new transmission capacity, upgrading and modernizing incumbent infrastructure, and increasing the penetration of renewable energy resources to the grid. (A2) Access and Quality of Public Transport. This investment will fund part of Metro Line 6 in Sao Paulo, Brazil. The infrastructure investment rate in Brazil has been low in the last decade compared to other EMs, particularly in the transport sector. Existing transport infrastructure has also suffered recently from increasingly frequent adverse climate effects. This project will connect 600,000 daily passengers from low-income suburbs to the city center. Improvements in quality may represent lower travel times (up to 1.5h less than current alternatives), lower accidents through an alternative to road transportation, improved air conditions, and enhanced resilience of public transport infrastructure. (B) MARKET CREATION - Financial Integration. The investment will be structured as a green and sustainability-linked loan, with an innovative social target on access to energy for rural households, contributing to the integration of sustainable finance in Peru and Brazil.

(A) FINANCIAL ADDITIONALITY – Innovative Financial Structure and Resource Mobilization. The proposed loan will provide long-term funding to Acciona (7-year tenor, compared to an average debt maturity of 4.3 years) and diversify their funding sources in emerging markets, including by mobilizing up to US$350 million from commercial lenders and DFIs, who can play a countercyclical role. In addition, as part of its SLL structure, the loan will include an innovative social target on access to energy for rural households in emerging markets. As of 2023, only 21 percent of global sustainability-linked issuances to date used social SPTs, mostly focused on gender equality. (B) NON-FINANCIAL ADDITIONALITY - Knowledge and Risk Mitigation. The proposed loan will contribute to strengthen Acciona’s understanding and implementation of IFC’s Performance Standards (“PS”), beyond the projects financed under the proposed investment, particularly on PS6 and PS7. As part of a broader Sustainable Infrastructure Partnership, IFC is also working with Acciona through an Upstream collaboration to assess the bankability of their green hydrogen projects in Latin America and explore de-risking alternatives.

Development Results Pending

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.