The Netherlands-based development bank FMO is participating with USD 50 million in a USD 300 million senior corporate loan alongside the International Finance Corporation (IFC) and a group of commercial banks to finance Central Puerto.
The transaction sends a strong signal that international capital continues to back Argentina’s energy sector despite a challenging macroeconomic environment. Notably, the facility has been structured as an unsecured, market-based corporate loan.
The financing further consolidates Central Puerto’s position as one of Argentina’s leading electricity generators, with a diversified portfolio of 6.9 GW, representing around 15% of the country’s privately installed generation capacity.
Beyond strengthening the company’s balance sheet, the deal reflects growing confidence in Argentina’s ongoing energy transition. From FMO’s perspective, participation as a B lender reinforces its commitment to sustainable, market-driven energy solutions in emerging economies.
The funds will be allocated across two strategic pillars. First, they will support the renewal of the concession for the Piedra del Águila Hydroelectric Plant, a 1,440 MW facility that has been operating for more than 30 years and plays a critical role in maintaining stability across Argentina’s national grid.
In December 2025, Central Puerto was officially awarded the tender to continue operating the plant, marking a key milestone in its long-term asset management strategy.
Second, the loan underpins the development of the Nuevo Puerto Battery Energy Storage System (BESS), a 150 MW project that will become the largest utility-scale energy storage facility in Argentina. This investment is essential to enhance grid flexibility, support the integration of intermittent renewable energy sources such as wind power and solar PV, and move towards a more resilient and modern power system.
The transaction is particularly significant at a time when international financing for energy infrastructure in Argentina remains selective. The fact that it was structured as an unsecured loan, on commercial terms and with active participation from private banks, highlights renewed global interest in well-structured Argentine energy projects.
“Operations like this send a strong signal of confidence and stability to the market, which is essential to attract new investment,” noted sources involved in structuring the deal.
From a sustainability standpoint, FMO has classified the transaction as B+, in line with IFC’s B category. For the BESS project, IFC Performance Standards 1, 2, 3 and 4 apply, while the hydropower asset also triggers Standards 5 and 6, covering environmental management and biodiversity.
As part of the environmental and social due diligence process, a limited number of gaps were identified against IFC requirements. An Environmental and Social Action Plan (ESAP) comprising seven corrective measures was agreed to mitigate potential impacts.
Central Puerto continues to advance a diversified generation mix, combining thermal, hydropower and renewable assets. Its portfolio currently includes 4.9 GW of thermal capacity, 1.4 GW of hydropower and a renewables platform expected to reach 575 MW by the end of 2025, reinforcing its role in Argentina’s evolving energy landscape.
