IFC approved financing for two companies in the Dominican Republic and Mexico for a total of $225 million, including the lender’s first ever deal with a step-down coupon tied to disability inclusion goals.
Dominican lender Banco Múltiple BHD accounted for the lion’s share of the funds. It will receive two subordinated loans for $75 million and $50 million respectively plus a trade finance facility of up to $30 million, the World Bank Group’s private sector financing arm said in a press release on Wednesday.
The bank will use the proceeds for on-lending to sectors including distributed solar energy, renewable energy generation and storage, sustainable construction and blue finance.
IFC said it will also advise BHD on aligning its green finance portfolio with the country’s national green taxonomy, which the multilateral lender helped develop jointly with the securities regulator and the environment ministry.
DISABILITY INCLUSION
Meanwhile, Mexican pharmaceutical company Neolpharma will tap IFC for financing to boost its production of active pharmaceutical ingredients and injectable medicines through the acquisition and modernization of manufacturing facility in Morelos, a state in south-central Mexico.
The multilateral lender did not disclose the size or terms of the financing. However, IFC said on its website last month that Neolpharma had requested a $70 million loan.
The transaction marks IFC’s first investment globally to incorporate a disability inclusion key performance indicator, it said in a release on Wednesday,
Neolpharma will be eligible for a reduction in the loan’s spread if it achieves targets related to internships and employment opportunities for people with disabilities, the lender said.
Mexico remains heavily reliant on imported pharmaceutical products, particularly active pharmaceutical ingredients, more than 85% of which are sourced from abroad, according to IFC’s release.