Latest update December 4th, 2024 2:40 AM
Farfan and Mendez secures US$5M IDB loan to expand solar energy generation
Kaieteur News – The private sector arm of the Inter –American Development Bank – IDB Invest has signed a revolving credit facility with Guyanese firm 2020 FMCG Inc. to develop and expand commercial and utility-scale solar photovoltaic (PV) energy-generation capacity.
The US$5 million facility with a five-year tenor will finance the company’s working capital needs to advance the use of renewable energy in Guyana, the IDB said in a press release. IDB Invest’s revolving working capital facility will allow 2020 FMCG Inc. to optimise its cash-conversion cycle, strengthen the relationships within its value chain and mitigate foreign-exchange risk by bridging the cash-flow gap between payments made to suppliers and payments received from clients.
The financing deal is aligned with Guyana’s Low Carbon Development Strategy 2030, which calls for the generation and usage of clean-energy resources, the bank said. It also strengthens IDB Invest’s commitment to working with the private sector to increase investments in renewable energy in Guyana and across Latin America and the Caribbean, driving action on climate change. The project is expected to contribute to five of the United Nations’ Sustainable Development Goals, No Poverty (SDG 1), Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Climate Action (SDG 13).
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Meanwhile, Farfan and Mendes is listed as an industry leader in providing equipment and services to various sectors, including agriculture, forestry, renewable energy, oil and gas, and mining. Since its establishment in 1967, the company has been at the forefront of technology adoption and has successfully adapted to market changes through diversification as a business model. Its partnerships with leading companies such as Crosbie Group, Soventix Caribbean and Concrete Canvas etc. have enabled it to offer a wide range of products and services to clients. Through the company’s Sustainability Strategy and a proven track record of success, Farfan and Mendes is helping to realize the Low Carbon Development Strategy ambition that renewables will account for over 70% of installed generation capacity by 2040 in Guyana.
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