DEG and FinDev Canada are each investing USD 50 million in a green bond issued by MSU Green Energy, a leading renewable energy platform in Argentina. Together with other investors, DEG and FinDev Canada participated in a USD 130 million tap issuance of the green bond, increasing its total size from USD 400 million to USD 530 million.

MSU Green Energy develops and operates hydroelectric and solar power plants as well as battery storage systems. With an installed capacity of approximately 1.7 GW, the company is one of the largest renewable energy producers in Argentina. The funds will be used, among other things, to build new solar capacity with an output of 182 MW and battery storage systems with a capacity of 150 MW. In addition, the funds are intended for the continued operation of existing plants.

Argentina’s growing electricity demand and energy transition are creating significant opportunities to expand renewable generation and energy storage. Investments in this infrastructure will help strengthen the reliability of the electricity system, support economic growth and mobilize further private investment in the country’s transition toward a more diversified and lower-carbon energy mix. At the same time, these investments will create jobs during the construction and operational phase.

“With our investment in MSU Green Energy’s green bond, we are supporting the expansion of renewable energy in Argentina. As the first development finance institution to participate in this bond, DEG is joining forces with FinDev Canada to send an important signal for mobilisation of private capital for the country’s energy transition,” commented Petra Kotte, Head of Infrastructure, Energy & German Business at DEG.

In addition to the investment, DEG and FinDev Canada are supporting the company’s ongoing efforts to improve its environmental and social standards. This is based on an Environmental and Social Action Plan developed jointly with MSU Green Energy, which further strengthens the company’s implementation of international ESG standards.