Peru has substantial potential for renewable energy and energy efficiency investments, but SMEs face regulatory and financial barriers. As a result, financing is limited and primarily directed at larger enterprises. Existing green credit lines mainly target large infrastructure projects, with no specific offers for SMEs.
BASE is collaborating with State Secretariat for Economic Affairs (SECO) to provide advisory services for the development and implementation of a partial credit guarantee, aimed at helping SMEs access financing for green solutions. BASE has provided technical advice to FOGAPI, a nonprofit organisation that manages guarantees in Peru.
BASE’s advisory role has encompassed guidance on the financial structuring of the guarantee, the creation of an operational manual, the development of a green taxonomy (including eligibility criteria and KPIs), and the establishment of mechanisms for monitoring, reporting, and verification (MRV).
Additionally, BASE has been instrumental in advising and guiding the establishment of governance structures and supporting negotiations and contractual agreements between the guarantee fund manager and SECO. The team has also provided advice on the pricing of the guarantee to ensure its long-term sustainability, as well as on risk mitigation mechanisms. One of the team’s key achievements during this process was playing a crucial role in the negotiations and successfully leveraging SECO’s allocated funds fivefold, resulting in a total fund of USD 35 million for Guarantees.
