All agreed loans

International. Inter-American Investment Corporation

Date of loan: 4 Nov 2011
Country: International
Customer: Inter-American Investment Corporation
Amount in USD: USD 50 million
Amount in EUR: EUR 36.3 million
Maturity: 15 years
NACE sector / loan type: Loan programme
Business area: Financial institutions and SMEs

Environmental effect

This loan contributes to climate change mitigation: 100%

Project

The loan has been provided to the Inter-American Investment Corporation (IIC) to finance environmental projects of mutual interest in Latin America.

At least 70% of the loan will be allocated to projects in the field of renewable energy generation, in any country where the IIC is active. The remaining 30% can also be allocated to energy efficiency measures. The utilisation of the loan programme will be coordinated with existing climate change programmes developed by the IIC and the Nordic Development Fund (NDF). In addition to the loan program, NIB, the IIC and the NDF have signed a Memorandum of Understanding in September 2011.

The IIC is a multilateral financial institution, established as one of the private sector arms of the Inter-American Development Bank Group. It began operations in 1989 to promote the economic development of its Latin American and Caribbean member countries by financing private enterprises.

Fulfilment of NIB's mandate

The loan programme will be in compliance with NIB's environmental mandate and competitiveness mandate. Of the proposed loan programme, 100% will be allocated to projects that lead to a significant reduction of greenhouse gases.

Furthermore, the loan to the IIC is in line with NIB's strategy to cofinance/lend through other IFIs and create a possibility to cooperate with the NDF in Latin America, while enabling NIB to support environmental projects in countries beyond Brazil in the region.

Sustainability summary

The loan programme will exclusively finance environmental projects; 70% of the loan will be allocated to the generation of renewable energy in any country where IIC is active, while the remaining 30% can be allocated also to energy efficiency measures. Climate change mitigation will be a major theme for the loan programme through its investments in renewable energy projects.