Project Itzamna

active

Energuate (the “company”), comprising Distribuidora de Electricidad del Oriente S.A. (DEORSA) and Distribuidora de Electricidad del Occidente S.A. (DEOCSA), is Guatemala’s largest privately-owned power distributor. It installs and operates low and medium-voltage lines from substations to rural, urban and peri-urban households within 200 meters of its network, contingent on municipal right-of-way access and safety compliance.Energuate, serves 297 of Guatemala’s 340 municipalities across 21 of 22 departments, Energuate's coverage spans approximately 101,914 km²—94% of the country's territory—and reaches about 12 million people (73% of the population). It currently serves 2.5 million, mainly rural customers. Energuate supports the Government of Guatemala’s Rural Electrification Program by extending last-mile electricity access to marginalized communities. The proposed investment entails an up to 10-year senior unsecured A/B Loan for up to US$[500-700] million to Energuate, out of which IFC will provide up to US$100 million from its own account. The B Loan will be mobilized through a public bond issuance (hence, the loan is referred to as “A/B Bond”). IFC’s own account (A Loan) will fund Energuate’s CapEx plan focused on low- and medium-voltage lines interconnection of new users, network improvements and maintenance, efficiency support of Guatemala’s grid by lowering energy losses, and GHG emissions reduction. Like the previous project, IFC proceeds will not be used for any investment-related activities within Alliance for Zero Extinction (AZE) and UNESCO World Heritage biodiversity sites (either natural sites or combined natural/cultural sites).