Photovoltaic investment and sustainability agreement finalized.
SANTO DOMINGO – Banco Popular Dominicano and Cotoperí Solar FV, led by the Spanish energy company ACCIONA Energía and Cotosolar Holding, announced the signing of a loan agreement for up to US$100 million to finance the construction of the Cotoperí Solar I, II, III Photovoltaic Park, which will be the largest solar park in Central America and the Caribbean.
This energy project, which is already under construction, will be located in Guaymate, La Romana, and will have a total installed capacity of 162.6 MWp, distributed in three photovoltaic power generation facilities of 54.20 MWp each.
The Spanish company ACCIONA Energía, the majority shareholder in the project, is currently the world's largest operator of 100% renewable energy with no fossil fuel legacy. It will partner with Cotosolar Holding, SA, which includes the JMMB Sustainable Energy Fund (FES), managed by JMMB Funds, Grupo Pais, and other minority investors.
Loan-linked sustainability agreement
Meanwhile, in Dubai, United Arab Emirates, during the Conference of the Parties on Climate Change (COP28), executives from Banco Popular Dominicano and ACCIONA Energía discussed the details of the sustainability agreement linked to the loan. This type of loan falls under ACCIONA Energía's Sustainable Impact Financing Framework, which considers various local impact indicators. This innovative structure is distinguished by the requirement that a portion of the loan's financial cost be reinvested in community-based social impact projects.
To define these projects, Fundación Popular, ACCIONA Energía, JMMB, and Grupo País are identifying various initiatives focused on community development and improving the quality of life for approximately 200 Dominican households per year. In this way, ACCIONA Energía reinforces its commitment to the well-being and development of the communities in which it operates.
“As part of our Responsible Banking model, at Banco Popular we are firmly committed to mobilizing efforts and financial resources to extend an energy matrix of clean sources in the country, allowing Dominican society to advance in its transition towards a lower emissions economy,” said Francisco García, Vice President of Investment Banking at Banco Popular, from Dubai.
Evidence of a sustainable vision
Grupo Popular's commitment to sustainability is evident in agreements like these. To date, the financial institution has financed US$391 million in renewable energy generation projects, totaling 493 MW of installed capacity in the country, solidifying its leading position in financing green projects in the Dominican Republic, according to a press release from Banco Popular Dominicano.
It adds that Banco Popular also supports various international investors as a guarantee agent for the development of renewable energy projects in the local market, with an installed capacity of 538 MW. Adding to this the investments of investment funds managed by Grupo Popular subsidiaries, Popular's total participation in renewable energy projects reaches 1,031 MW of installed capacity in the country.
Meanwhile, ACCIONA Energía, with a presence in 20 countries across five continents, is dedicated to the development, operation, and maintenance of renewable energy projects, with 12.9 GW of installed generation capacity. In 2022, it produced a total of 24 TWh of clean energy and, thanks to its operations, has prevented the emission of more than 13.3 million tons of CO2 into the atmosphere2.
