The International Finance Corporation (IFC), a member of the World Bank Group (WBG), has committed a US$100 million loan to Santander Chile to finance green building projects. This marks IFC’s first green loan in Chile dedicated exclusively to environmentally friendly buildings, and it is also the first loan of its kind granted to the Santander Group worldwide.
The transaction includes a sustainability-linked incentive, which is contingent on Santander Chile meeting key performance indicators (KPIs) related to the development of green construction sub-projects aligned with the Excellence in Design for Greater Efficiencies (EDGE) certification.
“This investment marks an important milestone for WBG in Chile, and we are proud to achieve it with a long-standing partner like Santander,” said Jean-Marc Arbogast, Country Manager for WBG Chile. “Over the past year, IFC and Santander have worked together to identify, finance, and monitor green construction projects. With this financing, we are helping the construction sector reduce carbon emissions and build a more resilient future for Chile.”
Soledad Ramírez, Head of Sustainability at Banco Santander, stated, “The financial industry plays a key role in facilitating the transition and development of a sustainable, low-carbon economy. In this regard, we have consistently worked on concrete actions that allow us to move toward that goal. That is why agreements like the one signed with IFC are fundamental to advance in this direction.”
This green building investment project with Santander Chile was possible thanks to IFC’s Advisory Services, which provided the bank with technical knowledge, innovation, and capacity building, as well as tailored support to its clients to help them achieve EDGE certification. This support was fundamental in identifying opportunities, designing the financing structure, and setting a milestone in Chile’s financial sector and sustainable construction market.
By partnering with key financial institutions like Santander, IFC can strengthen climate sustainability by boosting financing and capacity building, helping significantly scale the development of the aforementioned construction projects.
