Argentina’s Banco de la Nación (BNA) has created a US$100mn fund for renewable energy projects in the country.
Loans will be disbursed in dollars with a seven-year tenor and an 18 to 24-month grace period, to projects aiming to generate sustainable power.
Financing will be given to projects selected by the Argentine Economic Development Fund (FONDEAR) and with at least 30% of local content.
The allocation was made possible thanks to an interest rate subsidy by FONDEAR. Under the scheme, the government subsidises 3% of the Libor plus 5% annual rate, making financing much more affordable.
“We work very closely with various government areas, in this case FONDEAR, to try to offer all productive sectors the most financing lines possible. Everything we are doing fits within President [Mauricio] Macri’s credit programme. Working for the development of all, small and medium enterprise as well as national industry, that need credit to grow and create jobs,” says Carlos Melconian, BNA’s president.
President Macri has pledged to source 5% of the country’s energy needs from renewables by 2025, and hopes to attract US$20bn of investment towards such projects in the next decade.