KfW IPEX-Bank participates in financing for the Ituango hydropower plant in Colombia

Together with other international banks, KfW IPEX-Bank is participating in financing the 2.4 GW Ituango hydropower plant in the department of Antioquia in Colombia. KfW IPEX-Bank's portion of the loan is USD 100 million and is structured as a project-related corporate loan.

With this financing, KfW IPEX-Bank is supporting exports from Europe. For instance, the hydropower section of GE (formerly Alstom)* is delivering the eight turbines to Colombia that will provide the total output of 2.4 GW.

Due to the financing mode and volume, the project is considered a project-related corporate loan. As such it was assessed with regard to compliance with KfW IPEX-Bank's Sustainability Policy and the Equator Principles and fulfils their requirements.

KfW IPEX-Bank's financing is a share of a B loan tranche extended by the IIC (Inter-American Investment Corporation, a member of the Inter-American Development Bank Group, IDB). The borrower is Empresas Públicas de Medellin E.S.P., one of the three largest Colombian energy companies.

The first four turbines are expected to start generating power between 2018 and 2019; it is expected that the rest of the plant is generating in its entirety in 2021.

*in an earlier version of the news it said: GE