Project Brief
On December 24, 2025, MIGA signed a contract of guarantee with Banco Santander S.A. of Spain totaling US$826.5 million and for a tenor of up to 10 years. MIGA will cover USD and/or EUR‑denominated cross‑border loans made by Santander Spain to corporate enterprises in Brazil, against the Transfer Restriction and Inconvertibility (TR) risk, allowing Santander to receive a capital relief from such TR cover, in accordance with Spanish banking rules and regulations.
The MIGA-guaranteed loans will be used by Brazilian corporates to support projects in the following areas: food & nutrition security, digital services, water & sanitation, affordable & reliable sustainable energy, urban connectivity, health, and inclusion.
Development impact
The Project is intended to facilitate cross border investments in Brazil to increase access to finance toward Brazilian corporates in support of an array of highly developmental activities contributing to targeted developmental outcomes.
The proposed Project is consistent with Brazil’s Country Partnership Framework (CPF) for FY24-28 under the three High Level Outcomes (HLO): greater productivity and employment (HLO 1), greater inclusion of the poor and underserved populations (HLO 2), and a greener economy with reduced vulnerability to climate shocks (HLO 3). Furthermore, the Project is intended to fully align with the Global Challenge Programs (GCPs)
The Project is also aligned with MIGA’s FY24-26 Strategy and Business Outlook under its strategic focus of ensuring inclusive growth with an intended focus to direct use of proceeds toward projects preliminarily defined as (i) aligned with CPF and (ii) aligned with MIGA strategic areas of climate and/or gender.
Environmental Categorization
The MIGA project will support cross-border loans to corporate clients in specific sectors such as food and nutrition, security, health, digital, water, sustainable energy. These projects could have moderate to significant E&S risks impacts, as such, the MIGA project has been categorized as FI-1 in accordance with MIGA’s Policy on Environmental and Social Sustainability (2013).
The main E&S aspects of this project relate to Santander’s ability to identify, assess, and manage the E&S risks and impacts associated with its lending activities and the management of labor matters by Santander. MIGA analyzed Santander’s cross-border portfolio for types of transactions, industry sectors, and exposure to MIGA’s Exclusion List. MIGA also analyzed Santander’s E&S risk management procedures and emergency preparedness procedures in line with the requirements of Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts (PS1), and the Santander’s labor practices in line with the requirements of Performance Standard 2: Labor and Working Conditions (PS2).
As of December 2023, Santander’s cross-border portfolio in Brazil included loans to mid-sized and large corporate clients in sectors such as telecommunications, oil & gas and mining, consumer goods, crop production and automobiles. The bank has no exposure to activities on the MIGA Exclusion List within cross-border loan portfolio. The bank also has no exposure to coal-related activities; the MIGA portfolio will not include coal-related activities or oil and gas activities.
In relation to E&S risk management, Santander is an Equator Principles financial institution and is also a signatory to other global sustainable/responsible finance initiatives. The group E&S procedures are also implemented by the subsidiaries. Santander Group’s Environmental, Social and Climate Risk Management Policy specifies the group’s approach to E&S risk management for Equator Principles transactions, and transactions in sensitive sectors – mining and metallurgy, energy, defense, and soft commodities. The procedures require that transactions are assessed for E&S risks and impacts, and compliance with national E&S laws. Equator Principles transactions are assessed in line with the MIGA Performance Standards and where required, E&S action plans are developed to address identified gaps. The procedures also cover monitoring the E&S performance of Santander’s clients. Santander also has an external communication mechanism for receiving and addressing E&S concerns raised by third parties regarding projects financed by Santander.
The MIGA requirements for applying the Performance Standards differ from the Equator Principles requirements. For the purposes of the MIGA guarantee, Santander will be required to assess cross-border transactions against: (i) the MIGA Exclusion List; (ii) applicable E&S laws and regulations in Brazil; and (iii) the Performance Standards (for eligible loans in line with MIGA’s requirements).
MIGA also reviewed Santander emergency preparedness and response procedures; the procedures were found to be in line with PS1. MIGA’s review of Santander’s labor and working conditions found the bank’s policies and procedures to be in line with PS2. Amongst other aspects, Santander has labor policies and procedures that address terms of employment, recruitment, renumeration, benefits, grievance management and non-discrimination.
For the proposed guarantee, Santander will report annually to MIGA regarding its cross-border portfolio, the implementation of the E&S procedures as well as labor practices.
