IDB Invest agrees credit line to Colombia's Bancoldex

IDB Invest has issued a COP2.3 billion ($612 million) 13-month Standby Letter of Credit to Colombia's Bancoldex.

The deal aims to provide access to financing to seven energy trading companies, four of them small and medium-sized enterprises, to fulfill their contractual commitments and allow them to meet their electricity demand with clean energy sources.

This project will counter guarantee the payment bonds that Bancoldex will issue in favour of XM Compania de Expertos en Mercados, the electricity market operator in Colombia, by the order and account of seven electricity distribution companies. The guarantees will back these companies’ contractual commitments as offtakers under power purchase agreements.