Enel Chile and Santander sign loan to reduce greenhouse gas emissions and meet SDGs.
The structured financing, Sustainability‐Linked Loan (SLL), is for US$50 million and seeks to reinforce Enel Chile's commitment to the fight against climate change. Meanwhile, Santander continues to advance in its commitment to promote sustainable financing.
Thursday, July 22, 2021. Enel Chile has closed with Banco Santander its first local bank credit associated with the United Nations' Sustainable Development Goals (SDGs). The US$50 million loan is structured in such a way so that the interest rate is pegged to Enel fulfilling its greenhouse gas emissions reduction goals, scope 1, as well as to commitments to sustainability and the low‐carbon economy. The company is seeking to reduce emissions to levels equal to or less than 100 grams of CO2 for every KWh generated by 2023. This will be part of its decarbonization strategy, which includes adding 2.4 GW of renewable installed capacity by 2023 and by encouraging the electrification of final consumption.
"This first bank loan linked to the SDGs is a relevant milestone for Enel Chile, and is consistent with our business model that places sustainability at the center of our decision‐making. It is also an acknowledgement by the financial community of the soundness of our strategy which is a key driver of sustainable value creation for all," commented Giuseppe Turchiarelli, CFO of Enel Chile.
In this way, Santander continues to lead the way in sustainable financing in Chile. Jaime Arriagada, managing director of Global Debt Financing with Santander CIB, stated that "we are very pleased with this new transaction and, in particular, in supporting Enel, which is leading the drive for sustainability. Through this financing product we seek to encourage companies to transition to a low‐carbon economy, thus contributing to the fight against climate change".
In 2019, Grupo Santander announced a series of objectives that reflect its commitment to meeting the United Nations Sustainable Development Goals and ensuring that it conducts its business in a responsible manner. This includes supporting customers in their shift to a green economy, mobilizing €120 billion from 2019 to 2025 and €220 billion between 2019 and 2030 in green finance to help address climate change.
Enel Chile has operations in the power generation, transmission and distribution segments in addition to other businesses related to new services and products in the electricity market. In total it had a net installed capacity of 7.2 GW across the country as of March 31, 2021 and is the leading renewable energy operator in the Chilean market. Through its subsidiary, Enel Distribución, it distributes energy to more than 2.0 million customers in 33 municipalities in the Metropolitan Region.
Enel Chile SA published this content on 22 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 July 2021 19:57:03 UTC.