Farfan and Mendes gets US$5M IDB loan for solar power project

Guyanese firm, Farfan and Mendes, secured a US$5 million revolving credit facility with the Inter-American Development Bank (IDB) as part of the company’s efforts to use more renewable (solar) energy.

See below the fullrelease from the IDB:

IDB Invest has signed a revolving credit facility with Guyanese firm 2020 FMCG Inc. to develop and expand commercial and utility-scale solar photovoltaic (PV) energy-generation capacity. The $5 million facility with a five-year tenor will finance the company’s working capital needs to advance the use of renewable energy in Guyana.

IDB Invest’s revolving working capital facility will allow 2020 FMCG Inc. to optimize its cash-conversion cycle, strengthen the relationships within its value chain and mitigate foreign-exchange risk by bridging the cash-flow gap between payments made to suppliers and payments received from clients.

The financing deal is aligned with Guyana’s Low Carbon Development Strategy 2030, which calls for the generation and usage of clean-energy resources.

It also strengthens IDB Invest’s commitment to working with the private sector to increase investments in renewable energy iin Guyana and across Latin America and the Caribbean, driving action on climate change.

The project is expected to contribute to five of the United Nations’ Sustainable Development Goals, No Poverty (SDG 1), Affordable and Clean Energy (SDG  7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Climate Action (SDG 13).