MIGA Guarantees Support Chile’s BancoEstado to Further Financial Inclusion and Climate Finance

WASHINGTON, December 23, 2025 – The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group (WBG) that houses the World Bank Group Guarantee Platform, has issued a 15-year guarantee of up to US$758 million to cover a US$500 million non-shareholder loan to Banco del Estado de Chile (BancoEstado), Chile’s state-owned bank. The loan is being provided by JPMorgan Chase Bank, N.A. (J.P. Morgan), HSBC Bank plc (HSBC), and Standard Chartered (Standard Chartered), and is backed by MIGA’s Non-Honoring of Financial Obligations by a State-Owned Enterprise (NHFO-SOE) coverage.

MIGA’s guarantee will enable BancoEstado to expand lending to priority programs that are central to its public-policy mandate, including climate finance initiatives, micro and small enterprises, subsidized mortgages for low- and middle-income households, and products that advance financial inclusion and women’s economic empowerment. 

Despite its status as a high-income country, inequality remains one of the most significant socioeconomic challenges. Gaps in income distribution, low female labor participation, and limited access to finance among entrepreneurs underscore the need for inclusive, sustainable financial interventions. As the only state-owned bank in the country, BancoEstado plays a critical role in reaching underserved segments, supporting micro, small, and medium enterprises (MSMEs), and advancing green and sustainable finance in alignment with Chile’s climate commitments. 

“MIGA’s guarantee and our collaboration with BancoEstado, J.P. Morgan, HSBC, and Standard Chartered demonstrate how the World Bank Group Guarantee Platform can help reduce inequality, expand financial inclusion, and support Chile’s climate goals,” said Tsutomu Yamamoto, MIGA Managing Director. “By mobilizing private capital for a state-owned bank with a strong social mandate, this operation supports sustainable, inclusive growth and helps channel more financing to women, MSMEs, and climate-focused investments.”

“This financing will allow BancoEstado to further strengthen its climate portfolio as well as gender-related financing, aligning with our Sustainability Strategy, which establishes a roadmap to foster inclusion, support the climate transition, and generate positive social and environmental impacts,” said Jaime Fernandez, Chief Financial Officer of BancoEstado. 

“The guarantee complements the continued support of the World Bank Group to BancoEstado and is part of our broader effort to mobilize private capital for climate and inclusion in Chile,” said Jean-Marc Arbogast, World Bank Group Country Manager for Chile. 

“As the Sole Coordinator, J.P. Morgan is proud to have collaborated with MIGA and BancoEstado to reach this milestone, which will benefit MSMEs, lower-income households and drive financial inclusion for women," said Laura Galvin, Global Head of Export and Agency Finance at J.P. Morgan. “J.P. Morgan continues to provide financing to Latin American state-owned banks by working with our valued collaborator, MIGA. Together, we are driving the region’s economic growth by delivering impactful and inclusive financial support for development.” 

“HSBC is pleased to partner once again with MIGA to support BancoEstado’s efforts to drive the sustainability and decarbonization agenda in Chile, while also promoting financial inclusion,” said Sam Lippitt, Head of Export Finance for the Americas at HSBC.

“The financing is significant because it is our first of this kind in Chile. Our ongoing collaboration with MIGA has supported BancoEstado’s climate finance initiatives, increased lending for micro and small businesses, and the development of products to advance financial inclusion and women’s access to financial resources. We value our collaboration with MIGA and look forward to continuing working together in the future,” said Mr. Mustafa Sajjad Hussain, Executive Director in the Development and Agency Finance team at Standard Chartered.  

The project is aligned with the World Bank Group’s Gender Strategy 2024–2030, which aims, among other goals, to provide 80 million more women and women-led businesses with capital by 2030. BancoEstado’s commitment to direct a share of MIGA-enabled lending to women and women-owned micro and small enterprises contributes to this global ambition and supports efforts to close persistent gender gaps in access to finance.

 

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: Chichi Osuagwu cosuagwu@worldbankgroup.org