EIB backs Chile renewables projects

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EIB backs Chile renewables projects

The European Investment Bank (EIB) has announced a €150 million framework loan to Banco Santander Chile for financing projects contributing to climate change mitigation, especially large and medium-scale renewable energy schemes.

These will include wind, solar photovoltaic, concentrated solar power and biomass projects and transmission lines for transporting renewable energy.

This loan is being granted under the Facility for Energy Sustainability and Security of Supply (ESF). The project meets the ESF’s requirements by supporting environmental sustainability, energy security and the development of renewables.

Since the beginning of its financing activities in Latin America in 1993, the EIB has provided more than €6,300 million for long-term investment projects in 13 countries in the region.

On June 19th we reported that Banco Santander is acquiring stakes in four Chilean wind developments from U.K.-based Rame Energy. The bank will provide with US$69 million of equity funding for the wind power projects.

Santander Investment Chile Ltda. will invest 80% to 90% of the equity capital for 118MW of projects, while Rame has a call option right to reacquire Santander’s equity upon commencement of the commercial operations. The projects are expected to be operational by 31 December 215 at the last.

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