Finnfund

The Renewable Energy and Cleaner Production Facility (CAREC) invests in renewable energy, energy efficiency and cleaner production projects in Central America. The fund offers mezzanine financing and its size is USD 17 million. The focus will be on small and medium-sized enterprises. 

Since renewable energy and energy efficiency reduce carbon emissions, CAREC will also seek to include opportunities for selling carbon emission reduction credits.

The Honduras-based CISA hydropower company has produced the world’s first emission reductions certified under the Kyoto Protocol.

CAREC, managed by E+Co Capital Ltd., was initiated with core financial and institutional support from the Multilateral Investment Fund of the Inter-American Development Bank.  

CAREC’s other investors include the Central American Bank for Economic Integration, The Belgian Investment Company for Developing Countries, Triodos Renewable Energy for Development Fund of the Netherlands and Finnfund. With grant funding from the Multilateral Investment Fund and the Netherlands’ FMO the fund will have also a Technical Assistance facility.

CAREC is a good vehicle for Finnfund to invest in SME sector in the region, which is located far away from Finland, but which is important for us because of a Renewable Energy and Environment Partnership between the Finnish and the Central American Governments. (more information about the partnership: http://www.sica.int/energia/)

For further information please contact Ms Helena Korhonen, Senior Investment Manager, tel. +358 9 3484 3307 or by email helena.korhonen(at)finnfund.fi