ENGIE Chile secures $400m IFC renewables & storage loan
The International Finance Corporation (IFC), a member of the World Bank Group, has provided a US$400 million loan to ENGIE Energía Chile (ENGIE Chile) to help the company shift from fossil fuel-based power generation to renewable power generation with the installation of battery energy storage systems (BESS).
The loan includes US$200 million from IFC, US$114.5 million from investors under IFC's managed co-lending portfolio programme and US$35.5 million from SDG-focused investor ILX Fund under IFC's B Loan programme. An additional US$50 million parallel loan arranged by IFC is expected to close in the next few weeks to complete a total financing package of US$400 million.
This is IFC's first sustainability-linked loan in Chile's energy sector, which will contribute to facilitating the supply of clean energy to the National Electric System (SEN) and mitigate the intermittency of renewable generation through the implementation of BESS technology.
Manuel Reyes-Retana, regional director of IFC, said: "IFC is mobilising the necessary capital for sustainable innovation to promote decarbonization initiatives and adapt to global warming. Supporting leading companies such as Engie is vital to face the current climate challenges efficiently, and, for us, it is setting a precedent in green and sustainability-linked loans for the energy industry in Chile."
Rosaline Corinthien, CEO of ENGIE Chile, added: "We are very happy to have obtained this support from the IFC, a green loan that accounts for the work we do every day hand in hand with caring for people and the environment. Linked to our ESG performance, we have committed with IFC on targets for non-financial indicators on emissions and diversity, two key elements of our corporate strategy. This financing is a fundamental piece to materialise our ambitious investment plan in renewable energies in Chile, and thus continue leading the country's energy transition."