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Add to Preferred SourcesIFC, a member of the World Bank Group, approved a financing package for up to US$500 million for Pan American Energy (PAE) to help the company finalize an expansion and upgrade of its refinery in Argentina to produce lower-emission diesel fuels and support the country’s transition toward stricter and environmentally friendly fuel standards.
The financing package consists of an eight-year loan of US$135 million from IFC and US$315 million from several commercial banks and other financial institutions.
IFC’s financing will be used to complete a large scale, multi-year upgrade, and expansion of PAE’s refinery, which provides about 15 percent of the country’s refined fuel, in Campana, province of Buenos Aires. The completion of this program will ensure that the refinery can produce ultra-low sulfur diesel, reduce sulfur emissions, make other environmental improvements, and increase access to cleaner fuels. This increased supply will help reduce Argentina’s reliance on imported fuels and expand availability of efficient and cleaner fuels contributing to better air quality. It will be the first refinery with the capacity to produce cleaner burning ultra-low sulfur diesel in Argentina.
“We are confident that this loan will play an important role in helping Argentina meet its growing energy demands while at the same time transitioning to cleaner types of fuels,” said David Tinel, IFC’s regional manager for Argentina and the Southern Cone.
In Argentina, IFC has committed approximately US$1.3 billion in sustainable private sector projects over the past 18 months, becoming a major international source of financing to the country’s private sector during this period.
Original source: IFC
Published on 26 June 2019