IFC proposes US$220mn financing for Mexican solar and storage firm Enlight

The International Finance Corporation (IFC), part of the World Bank Group, is proposing to lend almost US$220 million (mn) to Mexican distributed generation and battery storage company Enlight.

IFC will ask its board to approve financing for a portfolio of distributed solar projects and battery energy storage systems (BESS) with a total installed capacity of 106MW of solar power and 293MWh of BESS.

The assets will serve commercial and industrial offtakers across Mexico.

The proposed investment entails a financing package of up to US$217 million (mn) consisting of a senior loan of up to US$170 million (mn), as well as letters of credit, a VAT facility and interest rate hedging instruments.

Financing conditions are better aligned with the underlying asset life and contracted revenue profile, IFC said, adding that Mexican lenders typically offer shorter tenors and have limited appetite for funding distributed generation.

Its participation will mobilize domestic and international capital, IFC said, “supporting the development of a broader and more diversified financing market for distributed energy infrastructure in Mexico.”

Mexico City-based Enlight is jointly owned by the Ahumada family, including the company’s founders and management team, and Illuminent Capital Partners, LLC, a US-based family office.

(The original version of this content was written in English)