CAF Provides a USD 400 Million Green-Labeled A/B Loan to Boost ENGIE Chile’s Energy Transition

CAF- development bank of Latin America and the Caribbean, acting as Lender of Record and Mandate Lead Arranger, has successfully structured a green-labeled A/B Loan totaling USD 400 million for ENGIE Energía Chile S.A. The loan will partially finance the company’s capital expenditure (CAPEX) plan focused on renewable energy projects.

The A/B Loan mobilized USD 150 million in international resources, with the participation of three prominent 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). Notably, SMBC not only participated as a B lender but also served as Green Loan Coordinator. This transaction marks the first participation of BBVA and CACIB in CAF-led A/B Loan structures in the past 15 years.

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

“This financing reflects CAF’s strong commitment to a just energy transition in Latin America and the Caribbean. Supporting ENGIE Chile in its shift toward a cleaner portfolio not only contributes to the region’s climate goals but also demonstrates that sustainable economic growth can be aligned with environmental responsibility,” said Sergio Díaz-Granados, CAF’s Executive President.

The operation addresses one of the main challenges facing the regional energy sector: decarbonizing the power matrix without compromising supply security and stability. Like many countries in the region, Chile faces the challenge of reducing its reliance on fossil fuels while meeting growing energy demand. ENGIE Chile’s investment plan aims to transform its energy mix so that renewables and storage systems represent over 70% of its installed capacity by 2027, while maintaining natural gas as a transitional fuel to ensure system stability during the shift.

Vincent Sorel, CFO of ENGIE Chile, stated: “This major step in our transformation plan complements the green bond issuance we carried out last September—our first in the local market and a pioneering move in the power generation industry. This loan also allows us to extend the average life of our debt and access a lower interest rate than our current average. The loan includes a one-year disbursement period, giving us flexibility to advance our strategic projects. Finally, the USD 400 million debt issuance is a key milestone in financing our two-year investment program, securing nearly all of the planned debt portion.”.

With this first-ever A/B Loan operation in Chile, CAF reaffirms its role as a strategic partner in transforming Latin America’s energy sector, promoting investments that combine financial viability with positive environmental impact and helping build 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 includes 24 member countries—22 from Latin America and the Caribbean, plus Spain and Portugal—along with 13 private banks. Its mission is to improve the quality of life for Latin Americans and Caribbeans by financing public and private sector projects, providing technical cooperation, and offering specialized services. CAF is one of the region’s leading sources of multilateral financing and a knowledge generator to strengthen public policies and enhance project impact. (www.caf.com)

About ENGIE Energía Chile S.A.

ENGIE Energía Chile (EECL) operates in the generation, transmission, gas transportation, and port infrastructure markets. It is a subsidiary of the ENGIE Group, whose purpose is to accelerate the transition to a carbon-neutral economy by offering low-emission electricity generation, renewable energy, and efficient, smart solutions for people, businesses, and cities.

EECL is currently one of Chile’s largest electricity generators (ranked fourth nationally) and has a strong presence in the transmission sector, with over 2,500 km of lines in operation, including the 600 km TEN line, which in 2017 enabled the country to unify its electric system.

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 strong leadership position in the Spanish market, is the largest financial institution in Mexico and it has leading franchises in South America and Turkey. In the United States, BBVA also has a significant investment, transactional, and capital markets banking business.

BBVA contributes with its activity to the progress and welfare of all its stakeholders: shareholders, clients, employees, providers and society in general. In this regard, BBVA supports families, entrepreneurs and companies in their plans, and helps them to take advantage of the opportunities provided by innovation and technology. Likewise, BBVA offers its customers a unique value proposition, leveraged on technology and data, helping them improve their financial health with personalized information on 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 worldwide by total assets in 2024 (The Banker, July 2025). With over 10,000 employees across Europe, the Americas, Asia-Pacific, the Middle East and Africa, the Bank supports large and mid-cap corporates and institutional clients, helping them meet both local and global financial needs. Crédit Agricole CIB offers a comprehensive range of products and services in capital markets, investment banking, structured finance, commercial banking and international trade. The Bank is a pioneer in climate finance, and a market leader in sustainable finance providing a full spectrum of solutions to all its clients. 

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

About SMBC Group

SMBC Group is a top-tier global financial group headquartered in Tokyo with a 400-year history. It offers a wide range of financial services including banking, leasing, securities, credit cards, and consumer finance. The Group has over 150 offices and 120,000 employees worldwide across nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group and one of Japan’s three largest banking groups. SMFG shares are listed on the Tokyo and Nagoya stock exchanges, and its ADRs trade on the New York Stock Exchange (NYSE: SMFG). In the Americas, SMBC Group operates in the U.S., Canada, Mexico, Brazil, Chile, Colombia, and Peru. Its operating companies 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