IDB Invest strikes first deal in Barbados

IDB Invest, a member of the Inter-American Development Bank (IDB) Group, approved a revolving credit facility of up to US$2 million to Caribbean LED Lighting Inc. (CLL) in Barbados.

The facility will be used to expand the operations of the company within the Caribbean region and to finance its working capital needs. This is the first transaction for IDB Invest in Barbados and reinforces IDB Invest’s commitment to supporting innovative and sustainable solutions in the Caribbean region, which is especially relevant as the country addresses COVID-19.

This new credit facility will facilitate access to finance for the private sector, reduce the dependence of Barbados on fossil fuels and promote private sector engagement that encourages greater productivity and resilient infrastructure investment. Aitor Ezcurra, Division Chief for Corporates at IDB Invest, highlighted that it allowed IDB Invest to contribute to the Barbados initiative to become carbon neutral by 2030.

Through this financing, the company is expected to increase the number of LED streetlights installed in the CARICOM region, and reduce streetlight energy consumption and CO2 emissions. In 2019, CLL reduced 1,334 tons of CO2 emissions and approximately half the electricity used to power the streetlights (4.9 GWh/year). These numbers would increase progressively in the next years and CLL is expected to continue growing its regional footprint by installing more LED streetlights in more islands in the Caribbean.

Ezcurra explained that the partnership was important from the point of view of the impact on the energy efficiency in the region.

“The main focus of this transaction is energy efficiency, through that we are making sure that problem is properly tackled, one little thing at a time. CLL is not a huge company, but technologically are providing a very strong support to see that energy efficiency gradually happens,” said the Division Chief.

LED lights have important advantages when compared to other available lighting options, which makes them suitable for places where replacing light bulbs is expensive, inconvenient, or difficult. LED lights have a longer lifespan, which means lower maintenance costs. They also have higher energy efficiency, reducing energy consumption by about 40 to 60 per cent. This is relevant, especially in a region where most of the electricity is produced from fossil fuels. Furthermore, LED lights emit almost no heat while traditional bulbs, such as incandescent, convert more than 90 per cent of the total energy used to power them directly into heat.

This deal potentially contributes to three of the United Nations’ Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7), Reduced Inequalities (SDG 10) and Climate Action (SDG 13).  (PR/AS)