IFC Invests $30M in BEEL Sustainable Credit II to Boost Mexico’s Green Infrastructure

The International Finance Corporation (IFC), a key member of the World Bank Group, has announced a landmark investment of up to US$30 million in BEEL Sustainable Credit II, a private debt fund managed by BEEL Infrastructure Partners. This investment is designed to catalyze sustainable infrastructure development in Mexico, targeting key sectors like energy, transport, digital services, and water systems. It represents IFC’s first foray into infrastructure-focused debt funds in the Mexican market and underscores its broader commitment to fostering climate resilience and inclusive economic growth through strategic partnerships.

Unlocking Capital for Sustainable Development

Infrastructure investment is widely recognized as a fundamental driver of inclusive and sustainable economic development. The BEEL Sustainable Credit II fund aims to raise up to MXN 8 billion (approximately US$400 million) and will offer both senior and mezzanine debt instruments to infrastructure projects across a range of sectors. These include renewable energy, electric mobility, digital infrastructure, logistics, and essential public services such as water and sanitation.

The fund will focus not only on brownfield projects—those requiring upgrades or expansions—but also on greenfield developments, which are entirely new undertakings. These types of investments are crucial for expanding Mexico’s infrastructure base in an environmentally conscious and socially responsible manner.

Enhancing Access to Long-Term Infrastructure Finance

IFC’s investment is expected to help bridge the significant infrastructure financing gap in Mexico, particularly by crowding in long-term institutional investors such as pension funds, insurance firms, and other development finance institutions (DFIs). The Fund intends to mobilize up to US$370 million equivalent in local currency from such investors, contributing to the deepening of Mexico’s capital markets and enhancing financial inclusion.

Importantly, the fund is also expected to serve as a demonstration case for the viability of infrastructure debt as an asset class—one that offers stable, long-term returns for investors while generating measurable economic and social impacts. IFC will play a catalytic role in this evolution, helping to mainstream infrastructure debt into the portfolios of Mexican institutional investors who have traditionally had limited exposure to this segment.

Promoting ESG Best Practices and Market Maturity

The partnership between IFC and BEEL will not only provide financial backing but also technical support. IFC will share its global expertise in environmental, social, and governance (ESG) standards, ensuring that all funded projects adhere to international best practices. The application of IFC’s Performance Standards on E&S risk management will elevate the overall operational and governance framework of the fund, enhancing its credibility and appeal to investors with strict ESG mandates.

Gerónimo Gutiérrez Fernández, Managing Partner at BEEL Infrastructure Partners, welcomed the investment, stating, “We are very pleased to take this important step in our partnership with IFC. It strengthens BEEL’s ability to provide innovative and long-term financing structures for sustainable infrastructure projects in Mexico and enhances our day-to-day operations and investment decisions.” He emphasized the pride BEEL takes in hosting IFC’s first infrastructure-focused debt fund in the country.

Driving Growth Amid Limited Public Resources

Cheryl Edleson Hanway, IFC’s Director of Infrastructure, Energy, and Mining for Europe, Latin America, and the Caribbean, highlighted the broader economic implications: “By increasing participation of institutional investors and promoting access to long-term private finance for infrastructure projects, the investment will help spur productivity growth, harness nearshoring opportunities, and improve the quality of Mexico's overall infrastructure.”

In the context of constrained fiscal space for public investment, the role of private capital becomes ever more critical. Infrastructure projects funded through vehicles like BEEL Sustainable Credit II can help Mexico capitalize on strategic opportunities, including trends like nearshoring—where global manufacturers relocate operations closer to major markets like the U.S.

Green Commitment: A Focus on Renewable and Resilient Projects

Approximately 50% of the fund’s capital is earmarked for environmentally focused initiatives, including renewable energy generation, electric mobility solutions, and water and waste infrastructure. These investments will contribute to Mexico’s decarbonization goals while improving the resilience and efficiency of critical public utilities.

By aligning economic development with environmental sustainability, the IFC-BEEL partnership aims to set a precedent for future infrastructure investments across Latin America. It offers a replicable model that demonstrates how blended finance and public-private cooperation can close infrastructure gaps in emerging markets.

A Model for the Future

The IFC’s strategic investment in BEEL Sustainable Credit II not only addresses Mexico’s urgent infrastructure needs but also fosters innovation in financial structuring, ESG compliance, and market development. This initiative positions Mexico to unlock the full potential of its infrastructure sector—benefiting communities, boosting investor confidence, and promoting long-term economic growth.

As the fund begins deployment, the success of this collaboration could serve as a template for similar initiatives in other emerging markets, emphasizing the importance of scalable, impact-driven financial solutions in achieving the Sustainable Development Goals.