ENGIE Peru SLL

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 The proposed transaction marks the first commitment to a mobilization platform designed to support ENGIE Energia Peru S.A. (“EEP” or the “Company”), the third largest electricity generator in Peru, controlled by Engie S.A (“Engie Global”), an existing top-tier global client of IFC. This mobilization platform is part of the Strategic Client Framework initiative where Board approval will be sought for up to US$[600] million (up to US$[250] million for IFC own account), to be committed in phases. The platform is designed to achieve EEP’s transformational non-conventional renewable energy (“NCRE”) goal, consisting of an 800MW target in the next 5 years. The first tranche will be structured as Sustainability-Linked Loan (“SLL”), introducing a first-of-a-kind climate adaptation target. The proposed investment associated to the first tranche entails a US$ 120 million, 12-year senior unsecured corporate loan and will be used to finance (i) the acquisition of one 37MW operational wind power plant, Duna & Huambos (ii) the development and construction of a 51.4 MW solar plant expansion, Intipampa and (iii) the development and construction of a 26.5MWh battery energy storage system (BESS) located within the premises of the Chilca 1 gas-fired power plant (property of EEP), in Lima region, the largest in the country. Additional renewable energy projects may be developed by EEP and may be considered for use of IFC proceeds, following an additional risk assessment and E&S due diligence process by IFC. This ESRS and ESAP will be updated going forward based on the results of this additional E&S due diligence.