Active Development AidData Chinese Aid

[China Co-Financing Fund] IDB approves 50 million USD loan from CHC for ECON-Pemex Green Bond Securitization Program

$50M USD

Funder	People's Bank of China (PBC)
Recipient Organization	ECON Servicios Energéticos Integrales S.A.P.I., S.A. de C.V.
Country	Mexico
Start Date	Dec 03, 2015
End Date	Feb 01, 2031
Duration	5,539 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85353`

Grant Description

[China Co-Financing Fund] IDB approves 50 million USD loan from CHC for ECON-Pemex Green Bond Securitization Program On 3 December 2015, the Inter-American Development Bank (IDB) approved a private sector loan (PSL) for the ECON-Pemex Green Bond Securitization Program, through which IDB would provide 100 million USD (Loan 3620A/OC-ME), and the People's Bank of China would provide 50 million USD (Loan 3620/CH-ME) via the China Co-Financing Fund for Latin America and the Caribbean.

This loan was anticipated to have a 6-year maturity. However, the IDB lists this project as cancelled, and it does not appear a loan contract was signed.

The loan was intended to be a revolving credit line to be accessed by an SPV, which would accumulate a portfolio of energy efficiency projects.

These projects would be developed by ECON Servicios Energéticos Integrales S.A.P.I., S.A. de C.V., a Mexican Energy Service Company, at Petróleos Mexicanos (PEMEX) facilities.

The projects were to include, for example, replacement of old or insufficient equipment, improving reliability and security of electricity supply, reduction in the use of heavy fuels, and reduction of greenhouse gas emissions. These green projects would then be securitized.

Subsequently, a green bond program would be created by PEMEX, in which asset-backed securities would be issued, backed specifically by many of the green projects financed via the credit line.

The IDB would also be involved with the bond program, by providing, from their ordinary capital, up to 100 million USD in Partial Credit Guarantees for the green asset-backed securities to boost confidence in the securities.

The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella Record ID#86526.

📋 Staff Comments

Although the IDB marks the project as cancelled, project status has been set to Pipeline: Pledge. While the 50 million USD loan was authorized, it does not appear a loan contract was ever signed. Thus, because the funds were never committed, the project status cannot be coded as 'cancelled'.

📚 Sources & References

PROJECT ABTRACT - ECON- PEMEX Green Bond Securitization Program
ME-L1181 : ECON-Pemex Green Bond Securitization Program Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.