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 collaborated with the Swiss State Secretariat for Economic Affairs (SECO) to provide design and advisory services for the development and implementation of a partial credit guarantee, designed to help SMEs access financing for green solutions. BASE’s support focused on providing technical advice to FOGAPI, the Peruvian nonprofit organisation that manages guarantees.
BASE’s advisory role included 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 monitoring, reporting, and verification (MRV) mechanisms. The team also provided advice on governance structures, supported negotiations and contractual agreements between FOGAPI and SECO, and provided input on pricing and risk mitigation to ensure long-term sustainability. A key achievement was successfully leveraging SECO’s allocated funds fivefold, resulting in a USD 35 million guarantee facility.
As of summer 2025, BASE’s contribution to this project has been completed and SECO’s support has concluded. The guarantee mechanism, however, will continue operating fully under the leadership and with the resources of FOGAPI. BASE is pleased that the project will remain active and sustainable, ensuring continued support for SMEs in Peru as they invest in renewable energy and energy efficiency solutions.
