IFC Leads Innovative $770 Million Investment in ENERGUATE to Improve Electricity Service Quality in Guatemala

Guatemala City, October 20, 2025 - The International Finance Corporation (IFC), part of the World Bank Group, announced the closing of an innovative investment totaling $770 million in ENERGUATE, the leading electricity distribution company in Guatemala, to improve service quality in the Central American country and refinance existing debt.

The loan, structured as an "A/B Bond", consists of a direct loan of $100 million from IFC's own account and $670 million funded through an international bond issuance. This is the first time this instrument has been used in Guatemala. It is also the largest A/B Bond in IFC's history.

The international bond, maturing in 2035 and arranged by Deutsche Bank Securities, J.P. Morgan, and Santander, attracted outstanding market demand, registering orders of more than $3 billion from over 200 investors.

The proceeds from the international transaction, after prepaying existing debt, will allow ENERGUATE to continue improving the quality of electricity service, strengthen energy loss control, and maintain the connection of new users within its coverage area. The company's current customer base reaches 2.5 million households, businesses, and companies in the country.

"This transaction is a historic opportunity for us to continue creating connections that transform lives in Guatemala. It will enable us to consolidate a more efficient and reliable service, strengthen confidence in our country, and pave the way for Guatemala to become a regional benchmark in sustainable development and financial innovation," said Paulo César Parra, General Manager of ENERGUATE.

"We are proud to strengthen our strategic alliance with ENERGUATE and continue promoting the sustainability of the electricity sector in Guatemala," said Ivana Fernandes Duarte, IFC's Regional Manager for Central America. "This milestone stands out not only for its size but also for its innovative structure, which will foster the development of capital markets in the country and the region."

Established in 1998, ENERGUATE is the largest power distribution company in Guatemala in terms of service territory, population served, and number of users, and is an existing IFC client. In 2024, IFC provided a $175 million sustainability-linked loan-the first of its kind in Guatemala-to support the company's expansion in the country. Additionally, in March 2025, ENERGUATE joined the Future Grids Alliance, a global IFC initiative that brings together emerging markets utilities to share knowledge and experience.