Washington, DC, July 1, 2015—IFC,
a member of the World Bank Group, signed an agreement to provide $60 million
to Banco Consorcio in Chile to finance non-conventional renewable energy
projects in the country. IFC’s long-term financing will help scale-up
commercially viable technologies and diversify the country’s renewable
energy matrix, including in small hydropower, biomass, solar, geothermal
and wind projects. Banco Consorcio will also join the IFC Global Trade
Finance Program, which will give it access to a trade line to help finance
the growth of trade flows in the Latin America and Caribbean region.
“Through this credit line, Banco Consorcio
will be able to expand long-term financing on terms that are viable for
non-conventional renewable energy developers in Chile, with whom we are
committed to financing, and this partnership with IFC will strengthen our
capacity to provide solutions to our clients in the long term”, said Francisco
Ignacio Ossa, CEO in Banco Consorcio. “This is a very interesting alliance
for Banco Consorcio, and we value this agreement which allows us to project
a long-term relationship with IFC”, he highlighted.
According to international estimates,
Chile’s electricity demand will increase about 5 percent every year through
2020, which will require large investments in power generation. In this
context, creating generation capacity in Chile will be essential to lower
the price of electricity for consumers and to support industry growth and
thus job creation. Supporting renewable energy projects is key for the
country’s sustainable development.
“IFC looks forward to this partnership
with Banco Consorcio, which will help develop cleaner energy sources in
Chile,” said Paulo de Bolle, IFC Head of Financial Institutions Group
for Latin America and the Caribbean. “With this project, IFC confirms
its commitment to provide innovative solutions in Chile and to contribute
to achieve the country’s development goals.”
Banco Consorcio also joined IFC’s Global
Trade Finance Program, providing the bank access to a global network of
confirming banks to support the growth in trade finance. IFC’s Global
Trade Finance Program supports trade in emerging markets by providing partial
or full guarantees for individual trade transactions through an effective
mitigation instrument, the IFC’s triple-A credit rating. As a member of
the program, Banco Consorcio will be able to provide trade finance solutions
to Chilean exporters and importers in key industries.
“By joining the Global Trade Finance
Program, Banco Consorcio will be able to establish stronger and far reaching
relationships with banks in countries that trade with Chile. These linkages
are a key element of IFC’s strategy for strengthening international commerce
in the region.” said Susanne Kavelaars, Head of Trade and Supply Chain
Finance for Latin America and the Caribbean.
By December 2014, IFC’s Global Trade
Finance Program had already supported more than US$12.8 billion in trade
flows in Latin American and the Caribbean countries through its guarantees.
Nearly 40% of these transactions have benefited local small and midsize
businesses and over 65% have supported trade flows between emerging market
countries, reinforcing IFC’s goal to be an important facilitator of South-South
IFC’s financing to Banco Consorcio
is part of IFC’s focus on supporting local financial markets to achieve
development impact. IFC aims to achieve these goals through the use of
innovative financial products and mobilization, fostering micro, small
and medium enterprises, encouraging corporate social responsibility, protecting
natural resources through environmentally-sustainable business practices,
and promoting business expansion into other emerging markets. For more
information about IFC in Latin America and the Caribbean, visit www.ifc.org/lac.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in about 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and tackle
the most urgent challenges of development. For more information, visit
About Banco Consorcio
Banco Consorcio S.A. is a medium size
commercially focused bank in Chile that has positioned itself as one of
the few banks in the country committed to providing financing to NCRE projects.
The bank is part of Consorcio Financiero S.A., one of the leading financial
groups in Chile. Since its origin in 2009, the bank’s objective has been
to become a relevant and profitable player in all its business lines, seeking
excellence in providing the best financial solutions to its customers.
For more information, visit www.bancoconsorcio.cl
Renewable energy: Any energy resource
that is naturally regenerated over a short time scale and derived directly
from the sun (such as thermal, photochemical, and photoelectric), indirectly
from the sun (such as wind, hydropower, and photosynthetic energy stored
in biomass), or from other natural movements and mechanisms of the environment
(such as geothermal and tidal energy). Renewable energy does not include
energy resources derived from fossil fuels, waste products from fossil
sources, or waste products from inorganic sources.