MIGA Continues to Support Renewable Energy in Chile
WASHINGTON, January 28, 2026—The Multilateral Investment Guarantee Agency (MIGA), which houses the World Bank Group Guarantee Platform, has issued a 15-year guarantee to Banco Santander S.A. of Spain and The Hongkong Shanghai Banking Corporation Ltd. (HSBC) to support renewable energy purchases by Corporación Nacional del Cobre de Chile (CODELCO), the world’s largest copper producer and Chile’s biggest electricity consumer.
The $859.14 million guarantee covers the risk of non-honoring of financial obligations by a state-owned enterprise under a $600 million loan from Santander and HSBC to CODELCO. It is the second MIGA-covered loan for CODELCO and will support payments under five long-term renewable energy power purchase agreements (PPAs) that are central to the company’s plan to fully decarbonize its electricity supply and produce cleaner copper for global markets. Together with the first MIGA-backed loan, which financed PPAs between 2023 and 2025, this operation is expected to fund PPA payments from 2025 to 2027, providing continuity for CODELCO’s climate financing program.
As the largest state-owned enterprise in Chile’s strategic copper mining sector, and the country’s largest electricity consumer and most carbon-intensive entity, CODELCO plays a central role in advancing Chile’s sustainability goals and in promoting the clean production of copper. By shifting a growing share of its electricity consumption to renewable sources, CODELCO is reducing its environmental footprint while helping to drive the broader transformation of Chile’s power system and advancing Chile’s goal of carbon neutrality by 2050.
“Chile’s leadership in global copper production matters far beyond its borders," said Tsutomu Yamamoto, MIGA Managing Director. “Supporting CODELCO’s shift to low-cost renewable power helps ensure that the copper needed for grids, renewables, and electric mobility is produced in a financially efficient and sustainable way. This guarantee structure supporting the borrowing of a state-owned enterprise can inform how other resource-rich economies use guarantees to secure competitive financing and increase the competitiveness of core export sectors.”
“The successful completion of this second transaction reflects CODELCO’s commitment to innovation, environmental responsibility, and long-term value creation for Chile, as part of our purpose to serve as a pillar of sustainable development for Chile and the world,” said Rubén Alvarado, Chief Executive Officer of CODELCO.
“We are proud to close this landmark deal with CODELCO, reinforcing Santander’s focus on supporting our customers in their transition to a low-carbon economy and helping them achieve their sustainability goals,” said Álvaro Samaniego, Head of Export Finance LATAM at Santander.
“As Joint Coordinator and Bookrunner, HSBC is proud to have collaborated with MIGA to support Codelco’s efforts to make gains in decarbonizing their electricity supply,” said Sam Lippitt, Head of Export Finance for the Americas at HSBC. “HSBC Export Finance is an active provider of financing to Latin American state-owned entities. We value our close partnership with MIGA and look forward to continuing to work together in the future.”
The clean energy transition is also delivering important benefits for CODELCO's operations. Shifting to renewable electricity improves cost optimization and predictability, as electricity expenses are less exposed to swings in international fuel prices, and it helps mitigate the risk of additional taxes, fees, and regulatory costs associated with greenhouse gas emissions and fossil fuel use. This operation underscores how the World Bank Group can work with resource-rich countries to decarbonize key industrial while maintaining competitiveness and attracting private investment into clean energy.
“This financing is part of the World Bank Group's ongoing support to help Chile harness its enormous renewable energy potential to generate green growth opportunities while achieving its ambitious environmental goals,” said Jean-Marc Arbogast, World Bank Group Country Manager for Chile.
The World Bank Group has 60+ years of experience in mining and mineral development, with more than 40 projects in over 20 countries. Building on this track record and responding to client demand, the WBG is embarking on a new approach to metals and minerals, and its support on metals and minerals in developing countries is expected to grow by five times in the next five years.
About CODELCO
CODELCO is the world’s largest copper producer primarily engaged in the exploration, development, and extraction of copper-bearing ores and byproducts, processing ore into refined copper and international trade of refined copper and byproducts. CODELCO is 100 percent owned by the Republic of Chile and controls approximately 4.7 percent of the world’s proven and probable copper reserves as defined by the U.S. Geological Survey. In 2023, CODELCO had an estimated 6.4% share of the total world copper production.
About the World Bank Group Guarantee Platform
Initiated in 2024, the World Bank Group Guarantee Platform consolidates guarantee products and experts from across the World Bank Group at MIGA. It provides a simplified and comprehensive menu of guarantee solutions, enabling clients to select the instrument that best suits their needs. The platform streamlines processes, removes redundancies, and provides greater accessibility by de-risking investments in developing countries. Its goal is to boost the World Bank Group’s annual guarantee issuance to $20 billion by 2030.
For more information about the guarantee platform, please visit: https://www.worldbank.org/wbgguarantees
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Contact: In Washington: Elizabeth Howton, ehowton@worldbankgroup.org