IFC and Banco Sabadell finance X-Elio with US$44.1 million to build photovoltaic plant in Mexico
Ciudad de México, México. July 26, 2021. The International Finance Corporation (IFC), a member of the World Bank Group, and Banco Sabadell closed a US$44.1 million financing agreement with X-Elio, global company specialized in renewable and sustainable energy, to build a photovoltaic plant in Mexico
The funding obtained through this agreement will be used for the construction, operation and management of the Perote II solar photovoltaic plant, with a capacity of 119 MW, located in the municipality of Perote, in the state of Veracruz, Mexico.
This project will help reduce emissions equivalent to 4 million tons of carbon dioxide into the atmosphere over the next 35 years. Perote II will provide a competitive source of energy for the country and help increase the installed capacity of non-conventional renewable energy, diversifying the country’s energy matrix and contributing to Mexico’s economic growth.
David Díaz, CFO of X-ELIO, stated: “The closing of this agreement proves our ability to obtain and negotiate competitive and long-term financing solutions for the development of our “green” projects. Once again, we are very proud of the trust that IFC and Banco Sabadell in Mexico have shown in us and we will continue to leverage our experience and expertise to create value for the local community.”
Juan Gonzalo Flores, Country Manager of IFC México, said: “IFC is proud to support with Banco Sabadell this project developed by X-ELIO. The Perote II solar photovoltaic plant will displace about 127,000 tons/year of CO2 (greenhouse emissions), helping Mexico achieve its long-term renewable targets in what is currently a predominantly thermal generation matrix. In addition to other recent IFC-financed solar power generation projects, this agreement is part of our long-standing support to foster the development of a sophisticated and competitive power market in México”.
Francisco Lira, CEO of Banco Sabadell Mexico, said: “Sustainability is at the core of our business strategy, that is why we are so proud to be a part of a project aimed to ensure Mexico’s energy security with clean energy. Finances are a key component to support a more sustainable world, not just by financing projects like this, but also by creating mechanisms that allow to transform industries to secure a better future”.
The agreement signed by X-ELIO highlights the company’s ability to obtain financing from top-level partners, as well as the strength of its projects and its business model in México, where it has been present since 2015 and currently has a portfolio of 535 MW of projects in operation in the country.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
X-ELIO (www.X-ELIO.com) is a company specialized in the development, construction, funding and operation of solar plants and sustainable energy development with global presence in Europe, United States, LATAM, Japan and Australia. The firm has 16 years of experience with more than 2.8 GW built. In 2020, it achieved over €300M revenue. The group is a global leader in renewable and sustainable energy, with a strong commitment to the reduction of greenhouse gases and the fight against climate change.
About Banco Sabadell in Mexico:
With more than six years of operation in Mexico as a Multiple Banking Institution and a presence in 10 cities in this country, Banco Sabadell (www.bancosabadell.mx) had as of June 30, 2021, a corporate and business banking loan portfolio and a number of deposits of approximately 85,000 MMMXN y 50,000 MMMXN respectively.
In Mexico, it is the first bank to be created 100% mobile for individuals and the first bank to collaborate with a fintech to develop products under the Embedded Finance model for a large segment of the Mexican population. It is the first banking institution to join the Mexican Fintech Association, which has allowed it to enrich its digital strategy. Additionally, it is the first Mexican bank to sign an alliance with a telecommunications company (Telefónica Movistar), with a model based on 100% digital credit.
It belongs to Grupo Banco Sabadell, the fourth largest Spanish banking group with total assets exceeding 225,000 million euros and a leading franchise in the corporate and entrepreneur segment with international activity in 20 countries with more than 2,500 branches and around 24,000 employees.
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