FinDev Canada and DEG help to strengthen Argentina’s renewable energy sector

MSU Green Energy is a leading Argentine renewable energy platform focused on hydro, solar, and energy storage projects. This transaction represents FinDev Canada’s first participation in a green bond within its sustainable infrastructure portfolio.

FinDev Canada and DEG, alongside other investors, participated in a US$130 million tap issuance of MSU Green Energy’s bond originally issued in June 2026. The additional bonds were issued on the same terms as the initial US$400 million offering, increasing its total size to US$530 million. This transaction demonstrates the capital markets’ ability to mobilise private investment alongside DFIs. The green bonds will be listed on the Argentine stock market, providing investors the opportunity to trade the bonds after they are issued.

The DFIs’ commitments will finance increased availability and reliability of low-carbon electricity in Argentina by supporting greenfield renewable and energy storage projects, such as the installation of 182 MW of solar capacity and 150 MW of battery energy storage system capacity, and the continued operation of approximately 1.7 GW of renewable capacity. Additionally, the commitment aims to support local economic development through construction and operation jobs while contributing to the country’s decarbonisation efforts.

Argentina’s growing electricity demand and energy transition are creating significant opportunities to expand renewable generation and energy storage. Investments in this infrastructure will help strengthen the reliability of the electricity system, support economic growth, and mobilise further private investment in the country’s transition towards a more diversified and lower-carbon energy mix. In line with its national energy transition plan, the country requires a total of approximately US$86 billion in investment by 2030 to expand renewable energy. FinDev Canada and DEG’s commitments aim to bridge this gap, while increasing the availability of clean energy and supporting decarbonisation objectives.

The commitment reinforces Canada’s development objectives with Argentina and represents an opportunity to advance both countries shared economic prosperity by supporting a more reliable renewable energy system that strengthens economic resilience, attracts investment, and deepens Canada’s relationship with Argentina.

FinDev Canada and DEG are supporting the company’s ongoing efforts to improve its environmental and social standards. This is based on an Environmental and Social Action Plan developed jointly with MSU Green Energy, which further strengthens the company’s implementation of international ESG standards.

Ariane Ducreux, Director of Sustainable Infrastructure, FinDev Canada: “The participation of FinDev Canada and DEG in MSU Green Energy’s green bond marks an important step in expanding climate finance through Argentina’s capital markets. As the first DFIs to invest in the bond, our strategic alignment reflects our shared commitment to advancing financing structures for climate-focused infrastructure and attracting private sector investments. Together, we are helping accelerate the country’s energy transition while strengthening its capital markets.”

Petra Kotte, Head of Infrastructure, Energy & German Business at DEG, noted: “With our investment in MSU Green Energy’s green bond, we are supporting the expansion of renewable energy in Argentina. As the first development finance institution to participate in this bond, DEG is joining forces with FinDev Canada to send an important signal for mobilisation of private capital for the country’s energy transition.”

Hernán Walker, Director and Chief Financial Officer of MSU Green Energy, concluded: “The participation of FinDev Canada and DEG in our green bond reflects the confidence of leading international development finance institutions in MSU Green Energy’s platform and long-term growth strategy. Their investment is an important milestone for MSU, supporting the continued expansion of our renewable energy platform while strengthening our international investor base and our environmental, social, and governance standards.”

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Read the article online at: https://www.energyglobal.com/electric-hybrid/18082026/findev-canada-and-deg-help-to-strengthen-argentinas-renewable-energy-sector/