Paraguay’s Development Finance Agency (AFD) has presented a new credit instrument to provide long-term financing to small and medium-sized enterprises (SMEs) to promote the development of energy efficiency projects.

The loan may cover up to 100% of the value of the project, with a repayment term of up to 15 years, and a grace period of up to 2 years. The maximum loan amount for each beneficiary will be USD 1,500,000 or its equivalent in local currency, with a rate of 5.25% in local currency and 3.95% in dollars.

Eligible items for potential financing include technology in solar water heaters, air conditioning/chambers and refrigeration systems, boilers/furnaces/heating systems, insulation systems, lighting systems, among others.