IFC Launches $100M Investment to Electrify Fleets in Mexico with Element Fleet

The International Finance Corporation (IFC), a member of the World Bank Group, has committed to a landmark investment of US$100 million in Element Fleet Management Corporation to support the electrification of business vehicle fleets and associated charging infrastructure in Mexico. This initiative represents the first phase of a US$600 million sustainability-linked financing package, setting the stage for a transformative shift in Mexico’s corporate mobility sector and aligning with the nation’s climate goals.

A Major Push Toward Sustainable Mobility

The initial tranche includes US$75 million in A Loan financing directly from IFC and US$25 million in B loans or parallel loans mobilized from other financing partners. This is just the beginning of a larger multi-year senior debt financing facility that could reach up to US$600 million, comprised of up to US$250 million in A Loans for IFC's account and up to US$350 million in B/parallel loans.

The investment is structured as a sustainability-linked loan (SLL), a type of financing where terms are tied to the borrower's achievement of specific environmental and social objectives. In this case, the loan targets include greenhouse gas emissions reduction and increased female participation in the workforce—two critical pillars of sustainable development.

Electrification to Cut Emissions and Spur Economic Inclusion

With this financing, Element aims to accelerate the deployment of electric vehicles (EVs), hybrids (HEVs), and plug-in hybrids (PHEVs) across its fleet. The program also supports the development of charging infrastructure, crucial for scaling EV adoption in Mexico. The goal is to integrate these cleaner vehicles into business operations and logistics, thus contributing to a projected annual reduction of 9,093 metric tons of CO₂ equivalent by 2029.

This initiative directly aligns with Mexico’s national climate agenda, particularly its pledge to cut greenhouse gas emissions by 35% by 2030. By helping fleet clients transition to greener alternatives, Element is positioning itself at the forefront of sustainable corporate transport in Latin America.

Leadership Speaks: Commitment to Sustainability and Social Impact

Manuel Tamayo, President of Element Fleet Management in Mexico, emphasized the company’s long-term dedication to sustainability:

“Sustainability is not a passing trend for us—it’s core to our purpose to move the world through intelligent mobility. This financing is a testament to our commitment and an enabler to create an enduring legacy of sustainable and positive impacts within our communities.”

The collaboration also underscores IFC’s strategy to fund innovative, private-sector-led models for climate and social progress in emerging markets. Juan Gonzalo Flores, IFC’s Country Manager for Mexico, added:

“By promoting the adoption of electric vehicles, this investment will contribute to enhancing the sustainability of Mexico's transportation sector. This is a groundbreaking investment that demonstrates the viability of an innovative fleet management model to increase access to electric vehicles, encouraging others to follow suit.”

Promoting Gender Equity in Mobility

Beyond environmental targets, the sustainability-linked loan includes provisions aimed at enhancing gender diversity within Element’s Mexican operations. The company has committed to boosting female representation in its workforce, recognizing the importance of inclusive practices in driving long-term development.

As the transportation sector plays a critical role in economic resilience and access to services, building inclusive and environmentally sound infrastructure is becoming increasingly vital. Over the past decade, the IFC has already invested and mobilized over US$11.3 billion in transport projects across emerging markets, reflecting its deep commitment to sustainable transport development.

Looking Ahead: A Model for Regional Electrification

This strategic alliance between IFC and Element may serve as a blueprint for future fleet electrification initiatives across Latin America and other emerging markets. As companies and governments face mounting pressure to act on climate change, the importance of public-private financial cooperation will be more vital than ever.

With this investment, IFC and Element are not only greening Mexico’s business transport landscape, but also signaling that climate-conscious mobility solutions are both feasible and economically attractive.