IFC Lends $18.5 Million to CHG-MERIDIAN Mexico to Expand Green-Product Leasing
Mexico City, Mexico — IFC, a member of the World Bank Group, will lend $18.5 million, approximately 240 million pesos, to Mexican leasing company CHG–MERIDIAN Mexico in order to expand its leasing of equipment and services to small and medium enterprises (SMEs) for energy-efficiency, cleaner-production, and renewable-energy projects.
By providing long-term funding, IFC will strengthen CHG-MERIDIAN’s ability to scale-up its leasing operations in the manufacturing sector for technologies such as solar-photovoltaic panels, cogeneration, and efficiency upgrades for manufacturing equipment. This will have a direct impact on lowering greenhouse gas emissions and encouraging the efficient management and reuse of scarce energy and water resources.
"Our strategic partnership with IFC will allow us to dramatically increase financing solutions for clients’ sustainable energy and efficiency technologies,” said Flavio Trujillo, CEO of CHG–MERIDIAN Mexico.
The investment aligns with a trend in Mexico, where the financial sector is increasingly supporting the environmentally-friendly management of natural resources. It will help address, for example, Mexico’s water-related challenges, where only 33 percent of residential and 16 percent of industrial wastewater is collected and treated.
“Supporting CHG–MERIDIAN Mexico is an ideal opportunity to leverage leasing finance to provide Mexican SMEs with the equipment and upgrades that can slash the use of energy and water, helping protect the environment as well as bottom lines,” said Roberto Albisetti, IFC’s Senior Manager for Mexico and Central America.
The investment is part of IFC’s strategy to promote access to long-term financing for corporate and small and medium companies, for projects that result in environmental benefits and reductions in greenhouse-gas emissions. By expanding CHG-MERIDIAN Mexico’s leasing to SMEs, which account for 80 percent of employment and 20 percent of GDP in the country, the loan will help provide renewables and energy efficiency to a sector critical to fighting climate change but that has lacked access to these technologies.
Emerging markets represent more than half the opportunities available globally for reducing greenhouse gas emissions. Small emitters in these markets play a critical role in achieving these reductions, and their needs are best addressed through financial intermediaries such as CHG-Meridian Mexico. IFC has created innovative new structures in renewable energy finance and developed customized credit lines that help SMEs make energy-efficiency upgrades, invest in cleaner production technology, and incorporate sustainability standards into supply chains.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.
About CHG–MERIDIAN Mexico, S.A.P.I. de C.V.
CHG-MERIDIAN Mexico, S.A.P.I. de C.V. is a Mexican based company that offers individual financial solutions to its clients. Founded in 1993, the company offers more than 19 years of experience in its field. As a part of CHG-MERIDIAN Group, the company is able to offer solutions in 19 countries all over the world. For more information, visit www.chg-meridian.mx.
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