CAF grants USD 400 million green-label A/B loan to boost ENGIE Chile's energy transition

CAF, Development Bank of Latin America and the Caribbean, in its role as Lender of Record and Mandate Lead Arranger, has successfully structured a green label A/B loan for a total of USD 400 million in favor of ENGIE Energía Chile S.A. The loan is intended to partially finance the company's capital expenditure plan (CAPEX), focused on renewable energy projects.

The subscription of the A/B loan mobilized international resources for a total of USD 150 million, with the participation of three leading financial institutions: Banco Bilbao Vizcaya Argentaria, S.A. New York Branch (BBVA), Crédit Agricole Corporate and Investment Bank (CACIB), and Sumitomo Mitsui Banking Corporation (SMBC). It is worth highlighting the role of SMBC, which in addition to participating as a B participant, acted as the Green Financing Coordinator. This operation also marks the first participation of BBVA and CACIB in the last 15 years in A/B structures led by CAF.

The financing will support the development of solar photovoltaic, wind and battery energy storage systems (BESS) projects included in ENGIE Chile's 2025-2027 strategic plan. This initiative will enable the company - one of the country's leading power generation and transmission companies - to significantly increase its renewable capacity and advance in its decarbonization process.

"Supporting ENGIE Chile in its transformation towards a cleaner portfolio not only contributes to the region's climate goals, but also demonstrates that it is possible to reconcile sustainable economic growth with environmental responsibility," noted Sergio Diaz-Granados, CAF's executive president.

The operation will address one of the main challenges facing the regional energy sector: decarbonizing the electricity matrix without compromising the security and stability of supply. Chile, like many countries in the region, faces the challenge of reducing its dependence on fossil fuels while responding to growing energy demand. ENGIE Chile's investment plan seeks to transform its energy composition towards a matrix where renewables and storage systems account for more than 70% of its installed capacity by 2027, keeping natural gas as a transition fuel to ensure the stability of the electricity system during the process.

Vincent Sorel, CFO of ENGIE Chile, stated that: "This important step in our transformation plan is in addition to the green bond placement we carried out last September, the first we made as a company in the local market and a pioneer in the power generation industry. In addition, it allows us to extend the average life of our debt and access an interest rate lower than the current average rate of ENGIE's debt. The agreement provides for a one-year disbursement term, which gives us the flexibility to move forward with our strategic projects. Finally, the issuance of US$400 million in debt represents a key milestone in the financing of our two-year investment program, securing almost the entire planned portion through debt."

With this first ever A/B operation in Chile, CAF reaffirms its role as a strategic partner in the transformation of the Latin American energy sector, promoting investments that combine financial viability with positive environmental impact and contributing to building a more sustainable energy future for the region.

About CAF - Development Bank of Latin America and the Caribbean-

CAF is an institution committed to sustainable development and regional integration. Founded in 1970, it has the participation of 24 countries, including 22 from Latin America and the Caribbean, as well as Spain and Portugal, along with 13 private banks. Its mission is to improve the quality of life of Latin Americans and Caribbeans by financing projects in the public and private sectors, providing technical cooperation and other specialized services. CAF is one of the main sources of multilateral financing in the region and a generator of knowledge to strengthen public policies and improve the impact of projects. (www.caf.com).

About ENGIE Energía Chile S.A.

ENGIE Energía Chile (EECL) is a company with presence in the generation, transmission, gas transportation and port infrastructure markets. The company is a subsidiary of the ENGIE group, whose purpose is to accelerate the transition to a carbon neutral economy, offering low-carbon electricity generation, renewable energy and efficient and intelligent solutions for people, businesses and cities.

EECL is currently one of the most important electricity generators in Chile (fourth nationally) and also has an outstanding participation in the transmission sector with more than 2,500 km of lines in operation, considering among them the 600 km TEN line, which in 2017 allowed the country to have a single electricity system(https://www.engie.cl/).

About Banco Bilbao Vizcaya Argentaria, S.A. New York Branch (BBVA).

BBVA is a global financial services group founded in 1857. The bank is present in more than 25 countries, has a leading position in the Spanish market, is the largest financial institution in Mexico and has leading franchises in South America and Turkey. In the United States, BBVA also has a significant business in investment banking, transactional banking and capital markets.

BBVA contributes with its activity to the progress and well-being of all its stakeholders: shareholders, customers, employees, suppliers and society in general. In this sense, BBVA supports families, entrepreneurs and companies in their plans, and helps them to take advantage of the opportunities offered by innovation and technology. BBVA also offers its customers a unique value proposition, leveraging technology and data, helping them improve their financial health with personalized information for financial decision-making.

About Crédit Agricole Corporate and Investment Bank (CACIB)

Crédit Agricole CIB is the corporate and investment banking arm of Crédit Agricole Group, the 10th largest banking group in the world in terms of balance sheet size in 2024 (The Banker, July 2025). More than 10,000 employees in Europe, the Americas, Asia-Pacific, the Middle East and Africa support the Bank's customers, meeting their financial needs worldwide. Crédit Agricole CIB offers its large corporate and institutional clients a range of products and services in capital markets activities, investment banking, structured finance, commercial banking and international trade. The Bank is a pioneer in the area of climate finance, and is currently the market leader in sustainable finance with a comprehensive offering for all its clients.

For more information, visit www.ca-cib.com

About SMBC Group

SMBC Group is a premier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a wide range of financial services, including banking, leasing, securities, credit cards and consumer finance. The Group has more than 150 offices and 120,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of the SMBC Group, which is one of the three largest banking groups in Japan. SMFG's shares are listed on the Tokyo Stock Exchange, the Nagoya Stock Exchange, and the New York Stock Exchange ADRs (NYSE: SMFG). In the Americas, SMBC Group has a presence in the United States, Canada, Mexico, Brazil, Chile, Colombia and Peru. The Group's operating companies in the Americas include Sumitomo Mitsui Banking Corp (SMBC), SMBC Americas Holdings, Inc, SMBC Nikko Securities America, Inc, SMBC Nikko Securities Canada, Ltd, SMBC Capital Markets, Inc, SMBC MANUBANK, JRI America, Inc, SMBC Leasing and Finance, Inc, Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co, Ltd (collectively, SMBC Group Americas Division).

For more information, please visit www.smbcgroup.com