The Inter-American Development Bank’s Investment Arm (IDB Invest) has signed a revolving credit facility with Guyanese firm 2020 FMCG Inc which is part of the Farfan and Mendes family. This financing will help to develop and expand commercial and utility-scale solar photovoltaic (PV) energy-generation capacity for the country.
The US$5 million facility with a five-year tenor will finance the company’s working capital needs to advance the use of renewable energy in Guyana.
IDB Invest’s revolving working capital facility will allow 2020 FMCG Inc. to optimize its cash-conversion cycle, strengthen the relationships within its value chain and mitigate foreign-exchange risk by bridging the cash-flow gap between payments made to suppliers and payments received from clients.
The financing deal is aligned with Guyana’s Low Carbon Development Strategy (LCDS) 2030, which calls for the generation and usage of clean-energy resources.
It also strengthens IDB Invest’s commitment to working with the private sector to increase investments in renewable energy in Guyana and across Latin America and the Caribbean, driving action on climate change.
The project is expected to contribute to five of the United Nations’ Sustainable Development Goals, No Poverty (SDG 1), Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Climate Action (SDG 13).
ABOUT 2020 FMCG
Farfan and Mendes is an industry leader in providing equipment and services to various sectors, including agriculture, forestry, renewable energy, oil and gas, and mining. Since its establishment in 1967, the company has been at the forefront of technology adoption and has successfully adapted to market changes through diversification as a business model.
Its partnerships with leading companies such as Crosbie Group, Soventix Caribbean and Concrete Canvas etc. have enabled it to offer a wide range of products and services to clients.
Through the company’s Sustainability Strategy and a proven track record of success, Farfan and Mendes is helping to realize the Low Carbon Development Strategy ambition that renewables will account for over 70% of installed generation capacity by 2040 in Guyana.