IFC Grants $600M Loan to ENGIE Perú to Boost Renewable Energy and Sustainability

The International Finance Corporation (IFC), a member of the World Bank Group, has approved a corporate loan of up to US$600 million to ENGIE Energía Perú, one of Peru’s largest and most diversified power generation companies. The financing will support the company’s expansion of renewable energy projects and help accelerate the nation’s transition toward a low-carbon, climate-resilient economy.

First Green and Sustainability-Linked Loan with IFC

The initial US$120 million tranche of the facility is structured as a Green and Sustainability-Linked Loan, marking the first collaboration of its kind between IFC and ENGIE Perú. The structure complies with the Loan Markets Association (LMA) and International Capital Market Association (ICMA) guidelines, ensuring adherence to globally recognized sustainability and transparency standards.

This innovative financial instrument links loan terms to the achievement of specific environmental, social, and governance (ESG) targets, demonstrating a growing trend in sustainable finance where corporate funding is directly tied to measurable impact.

Strategic Renewable Energy Projects

The funds will be used to finance and refinance several high-impact clean energy initiatives, including:

• Central Expansión Solar Intipampa (Moquegua, 51.7 MW): A photovoltaic solar plant expansion that will significantly increase renewable capacity in southern Peru.

• Duna and Huambos Wind Farms (Cajamarca, 36.8 MW): Refinancing these existing wind projects will help optimize costs and extend their contribution to clean energy generation in the country’s north.

• Chilca-BESS Battery Energy Storage System (26.5 MW): Part of the ChilcaUno Thermal Power Plant in Lima, this project will enhance grid stability and enable greater integration of intermittent renewable sources.

Performance-Based Sustainability Commitments

The loan is linked to three key performance indicators (KPIs) that ensure both environmental and social benefits:

1. Increasing renewable energy share in ENGIE Perú’s total installed capacity, tackling the challenges of integrating clean power into a national grid with current infrastructure limitations.

2. Implementing climate adaptation plans tailored to each site and asset, positioning ENGIE Perú as a leader in resilience within Peru’s energy sector.

3. Promoting gender equity by increasing the proportion of women in management roles in an industry traditionally dominated by men.

Voices from the Partnership

“This green and sustainability-linked loan reflects our commitment to developing energy solutions that not only drive economic growth but also promote job creation, climate resilience, and access to clean energy,” said Cheryl Edleson, IFC’s Director for Infrastructure, Energy, and Mining in Europe, Latin America, and the Caribbean. “This is a bold step toward a cleaner, more inclusive energy future for Peru.”

El Mehdi Ben Maalla, Country Manager and CEO of ENGIE Energía Perú, emphasized the broader impact: “The loan granted by IFC enables us to continue expanding our portfolio of renewable energy projects while meeting the highest local and international standards in risk management, environmental and social impact, resource efficiency, health, and safety. It is a clear sign of trust in our vision for sustainable growth.”

Strengthening Peru’s Clean Energy Leadership

ENGIE Energía Perú already generates 30% of its total output from renewable sources and has a development pipeline exceeding 1,600 MW in wind, solar, and battery storage projects. This partnership with IFC will accelerate the company’s role as a key driver in Peru’s clean energy transformation while reinforcing its environmental and social governance standards.

By combining innovative financing mechanisms with concrete environmental and social targets, the agreement sets a precedent for how large-scale infrastructure investments can align profitability with sustainability, contributing both to Peru’s decarbonization goals and the empowerment of communities across the country.