- Catalyst for Dekarbonization: The 100 million dollar investment of IFC is part of a package of $ 600 million for the 35% emission reduction destination from Mexico by 2030.
- Fleet electrification drive: The financing supports the acquisition of BEVS, HEVS, PHEVS and load infrastructure for commercial fleets.
- Sustainability -bound incentives: Loan bindings Financing on environmental and gender inclusion cubs to promote the effects and the accountability obligation.
The International Finance Corporation (IFC), part of the World Bank Group, has committed $ 100 million for the element Fleet Management Corporation to accelerate the transition to electric vehicles (EVS) in Mexico. This is the first phase of a larger financing program of 600 million US dollars with which the national climate and decarbonization goals of Mexico are to adapt.
The deal structured as a sustainability loan and includes a loan of $ 75 million of IFC's own capital and $ 25 million in B or parallel loans, which were mobilized by external lenders. The structure combines the financing of the specific decarbonization and the results of gender inclusion.
“This financing is proof of our commitment and an enabler in order to achieve a permanent heritage of sustainable and positive effects“said Manuel Tamayo, President of Element Mexico. “Sustainability is the core of our purpose.”
The investment will finance the takeover of battery electric vehicles (BEVS), hybrids (HEVS) and plug-in hybrids (PHEVS) for element fleet customers and the development of the necessary EV infrastructure. By 2029, the initiative aims to reduce over 9,000 tons of CO₂ emissions annually.
Description of the transaction as “groundbreaking“ Juan Gonzalo Flores, IFC Country Manager for Mexicoemphasized the potential of the project “Catalyze the introduction of innovative fleet management models and inspire a wider absorption of electric vehicles.”
The loan also includes provisions to increase the participation of female workforce in the Mexican operations of Elements and underlines the role of sustainable transport in promoting integrative economic growth.
In the past ten years, the IFC has invested more than $ 11 billion in the transport infrastructure in the emerging countries and has invested itself as an important enabling of transitional paths with low-carbon transition railways in the private sector.
Follow ESG News on LinkedIn