The EIB and NAFIN sign USD 100 million loan to support climate action projects in Mexico
The European Investment Bank (EIB) and Nacional Financiera (NAFIN), one of Mexico’s leading development banks, have signed a USD 100 million loan to support climate action projects in Mexico.
The loan to NAFIN will be on-lent to private sector borrowers to develop wind farm projects, including one 200 MW farm located in the State of Coahuila, northern Mexico and a 130 MW farm in the State of Zacatecas.
The development of wind energy in Mexico supports national targets for renewable energy generation and contributes to the Bank’s Renewable Energy and Energy Efficiency and Climate Action objectives.
EIB Vice-President, Román Escolano, is in Mexico to meet with Government officials, including the Ministry of Finance, Banobras and NAFIN.
Román Escolano, European Investment Bank Vice-President overseeing operations inter alia in Latin America said: “The EIB is pleased to sign this USD 100 million loan with NAFIN to support climate action projects in Mexico today. With this financing operation, one of the first ones between EIB and Mexico’s public sector, EIB and NAFIN are initiating a strategically important cooperation that will provide further support to sustainable energy solutions across the country and thereby help Mexico and the EU contribute to the fight against climate change.”
Jacques Rogozinski, General Director of NAFIN said: “We are very happy with the signature of this loan, since it contributes to the strengthening of NAFIN’s green strategy and helps us move forward in achieving Mexico’s climate goals. This financing agreement is also a great example of how working with international partners, such as the EIB, in addressing common goals has an enhanced impact, particularly in an area of great relevance as tackling climate change. This USD 100 million loan is a milestone in NAFIN’s prosperous relationship with the EIB, and I am pleased that we will continue working together to support capacity building and to promote more sustainable projects in Mexico”.
This new loan was signed following the signature of a Memorandum of Understanding (MoU) in March this year, setting out to strengthen the cooperation and collaboration between the EIB and NAFIN.
Nacional Financiera (NAFIN) is one of Mexico’s development banks, fully owned by the Mexican government. NAFIN’s mission is to contribute to the economic development of the country through facilitating the access of SMEs and entrepreneurs to financing and other services for business development, as well as supporting priority projects of the Federal Government, including clean and renewable energy projects. NAFIN is key to promoting the Mexican government’s policies for expanding economic and social development in Mexico with the primary objective of generating jobs and regional growth by strengthening and modernizing SMEs.
With EUR 75 billion of investments in 2016, the EIB, the Bank of the European Union, is the largest international financial institution in the world. It dedicates some 10% of its lending and financing to support investment projects outside of the European Union.
The European Investment Bank has supported development and economic activity in Latin America with loans and equity investments worth EUR 7 billion since its first operation in the region in 1993. In Mexico, the EIB has provided a total of EUR 646 million to projects, including in the energy and small business sectors and industry.