BNP Paribas Invests in Colombia’s ISAGEN Renewable Energy With Backing From Italian Government

A financing agreement totaling €140 million EUR, structured by BNP Paribas CIB (BNP: PAR on Euronext Paris; BNPQY on OTCMKTS) and guaranteed by SACE, an Italian insurance-financial group wholly owned by the Ministry of Economy and Finance of Italy, aims to support the growth objectives of ISAGEN (ISG: BVC on Bolsa de Valores de Colombia). ISAGEN is identified as Latin America’s third-largest renewable energy generator, with operations in hydroelectric, solar, and wind power. This initiative is designed to foster new business opportunities for Italian companies in the Colombian energy sector.

The agreement seeks to strengthen commercial ties between ISAGEN and Italian exporters within the renewable energy value chain. As part of this arrangement, ISAGEN has committed to participating in annual matchmaking events organized by SACE, where Italian companies will be considered for its procurement processes.

BNP Paribas CIB, the financier of this operation, is recognized in the global export finance market and as a key structurer of SACE-covered facilities worldwide, with a focus on sustainable transactions. BNP Paribas has maintained a presence in Colombia for over 50 years, providing financing solutions to clients locally and internationally.

Established in 1995, ISAGEN operates a diversified portfolio comprising 15 hydroelectric plants, 10 solar plants, and two wind farms, possessing a net effective capacity exceeding 3,000 MW. The company plays a role in Colombia’s energy transition and contributes to the country’s decarbonization targets, aligning with discussions at COP29.

This operation aligns with SACE’s strategic objective of promoting Italian exports and fostering partnerships in emerging markets. The focus is on facilitating long-term industrial collaborations in sectors driving the global energy transition.

Jenaro Laris Vázquez, director of SACE’s Latin America Office, stated that this transaction reflects SACE’s commitment to supporting Italian companies’ expansion into dynamic markets like Colombia, with an emphasis on renewable energy. He indicated that SACE aims to cultivate alliances where both ISAGEN and Italian enterprises demonstrate strengths. Matchmaking initiatives led by SACE are intended to facilitate new commercial relationships between ISAGEN and Italian exporters, potentially influencing future investment plans.

Arturo Mejía, ISAGEN’s financial vice president, commented on the financial milestone, noting it reflects confidence in ISAGEN’s stability and long-term vision. He stated that the transaction with BNP Paribas CIB and SACE represents a strategic step toward diversifying financing sources, enhancing financial resilience, and increasing flexibility for economic fluctuations. Mejía added that the financing enables ISAGEN to expand its supplier base, reinforcing its supply chain through partnerships with Italian companies capable of supporting its mission to deliver clean energy.

Jorge Valderrama, BNP Paribas’ territorial director in Colombia, remarked on the significance of supporting ISAGEN with this financing line in collaboration with SACE, characterizing it as a notable development for ISAGEN and the Colombian energy sector. He emphasized BNP Paribas’ commitment to providing strategic financial solutions that assist clients in leading transformations within key sectors contributing to Colombia’s economic growth.

ISAGEN Medellín. Photo credit: Loren Moss.