BANCO ESTADO - GLOBAL GATEWAY GREEN TRANSITION

Promoter – Financial Intermediary

BANCO DEL ESTADO DE CHILE

Location

• Chile

Description

The operation consists in a Framework Loan to the Chilean public bank BancoEstado to finance energy efficiency and renewable energy mainly for SMEs and industries, in support the EU's Global Gateway Investment Agenda (GGIA) in Latin America and the Caribbean.

Additionality and Impact

Framework Loan to Chilean state own bank Banco Estado to finance energy efficiency (EE) and renewable energy (RE) for SMEs and industries among others, in support the EU's Global Gateway Investment Agenda (GGIA).

Chile is the largest copper exporter in the world and is as well an important player in other Critical Raw Materials (CRM) such as lithium. The operation will support hence the decarbonisation of the CRM supply chain, needed to ensure clean energy transition worldwide.

The operation will hence be fully aligned with the GGIA on Green Transition and could contribute to the EU-Chile partnership on Sustainable Raw Materials.

Chile targets carbon neutrality by 2050 and in this context EE and RE activities are key to achieve its goals.

SMEs and industries, face several barriers that hamper the integration of EE and RE measures: lack of energy-specific capabilities, insufficient information and limited access to suitable financial products.

The operation will improve financing conditions through long term tenors and favourable financing conditions hence accelerating the uptake of green technologies.

The EIB financial and non-financial support will contribute to accelerate the uptake of these activities and ensure the availability of the needed technical capacities for the implementation of the projects.

Objectives

The aim is to enhance access to finance for the target beneficiaries.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

USD 110 million (EUR 105 million)

Total cost (Approximate amount)

USD 147 million (EUR 140 million)

Environmental aspects

The operation will bring positive environmental and social benefits, since it will support Banco Estado in expanding its renewable energy and energy efficiency portfolios, to help achieving a climate-neutral economy and resilient society. The EIB will require the promoter to take all the requisite measures to ensure that the sub-projects receiving loans will comply with national legislation and the ElB's Environmental and Social Standards, as well as international treaties and conventions signed and ratified by or otherwise applicable and binding in the country.

Procurement

The EIB will require the intermediary to take all requisite measures to ensure that all projects are in line with the EIB's Guide to Procurement.

Status

Signed - 27/12/2024