December 2 (Renewables Now) - Colombian power company Enel Colombia on Thursday said it had been granted loans totalling COP 449 billion (USD 94.2m/EUR 89.5m) to advance rural electrification and build new renewables and electrical substations.
Latin American financial institution Bancolombia granted one tranche of COP 360 billion under a term of seven years, linking it to two sustainability targets. One target is focused on bringing electricity to over 3,200 residents in rural areas in the department of Cundinamarca. The second requires Enel Colombia to increase its installed renewable energy capacity and reduce thermal generation.
The company said that it aims to build 1,000 MW of wind and solar farms.
The interest rate on the loan can drop by up to 100 basis points during the term if the company meets these targets.
The second loan is for COP 89 billion with a term of six years. Enel Colombia will use the funds to build three substations with a combined capacity of 240 MVA that will cover four municipalities in Cundinamarca and one locality in the Capital District of Bogota.
(COP 1,000 = USD 0.210/EUR 0.199)