Ergon Peru raises DFI-backed solar project loan

Ergon Peru has raised a $142 million project financing to fund development of a $175 million rural distributed generation solar project across Peru. The 13-year debt is split equally between sole lead arranger SMBC and local development bank Cofide.

Ergon won a 15-year contract in 2015 from the Peruvian energy ministry to supply the 150,000 photovoltaic systems. The projects will be in the north, centre and south of the country, with Ergon expected to receive annual income of $11.4 million for northern Peru, $8.9 million for the centre, and $8.4 million for the south. After 15 years of operation, the projects will be transferred to a group of 11 local distributors.