The International Finance Corporation (IFC) and the North American Development Bank (NADB) have agreed to provide a $200m loan to Infraestructura Energética Nova (IEnova) to fund four solar projects in Mexico.

IFC, a member of the World Bank Group is providing $100m and the NADB is providing $100m for the solar projects with the combined capacity of 376MW.

The funding provided by NADB will be completely used for the design, construction and operation of IEnova’s 125MW Don Diego, a solar park located in the municipality of Benjamin Hill, Sonora.

IEnova’s power plants will reduce 561,652 tonnes of equivalent carbon dioxide emissions every year

IEnova’s power plants are expected to reduce 561,652 tonnes of equivalent carbon dioxide emissions every year, thereby supporting the efforts of Mexico’s government to reduce greenhouse gas emissions and diversifying the energy supply in the country.

IEnova CEO Tania Ortiz said: “We are very pleased to receive the first loan certified under the Green Loan Principles that IFC grants to a company in Mexico.

“Once again, IEnova is at the forefront and stands out as a leader, not only because of its innovation and financial discipline, but also for its high standards in terms of sustainability.”

The financial institution also said that the funding is a part of its efforts to work with private-sector firms in Mexico to promote climate change mitigation projects, including the development of unconventional renewable energy.

IFC Latin America and the Caribbean vice president Georgina Baker said: “This investment, in addition to other recent IFC-financed solar power generation projects, is part of our long-standing support to foster the development of a sophisticated and competitive power market in México.

“The private sector needs to play a leading role in Mexico’s efforts to mitigate climate change and with these projects, IEnova is helping further the country’s climate agenda.”

IEnova is claimed to be one of the largest private sector energy companies in Mexico that operates in natural gas, power generation and refined products storage segments.

Recently, IFC provided financing to build six wind projects with combined capacity of 310MW in Pakistan.