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IADB to fund deployment of EVs in Peru [free access]

April 8, 2021

The Inter-American Development Bank (IADB) has approved plans to provide a USD20 million loan to encourage the deployment of electric vehicles (EVs) in Peru. IADB will offer concessional resources from the Clean Technology Fund (CTF) as well as its own resources to provide long-term financing for the purchase of EVs, including buses. The programme will provide long-term credit through individual sub-loans to finance EV projects that will result in the migration to EV technology. The credits will be delivered via Corporación Financiera de Desarrollo (COFIDE), the development bank of Peru.

 

The loan comprises two tranches. The first tranche of USD10.5 million will be from the bank’s ordinary capital and carries an interest rate based on the London Interbank Offered Rate (LIBOR). The duration of this loan will be 20.5 years, with a grace period of 6.5 years. The second tranche of USD9 million will be from the Clean Technology Fund and will have a duration of 20 years and a grace period of 10.5 years.