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World Bank-backed guarantees support Codelco renewable energy financing
A second 15-year MIGA guarantee of almost $860 million became effective in December, covering a $600 million loan tied to renewable power purchase agreements.
Mining.com reports that the World Bank Group is citing Chile’s state-owned copper producer Codelco as an example of how financial guarantees can draw long-term capital to mineral-rich countries while reducing the environmental footprint of mines needed for the energy transition.
The financing approach uses the World Bank Group’s Multilateral Investment Guarantee Agency, which protects commercial lenders against the risk that Codelco does not meet certain financial obligations.
Mining.com also says a second 15-year MIGA guarantee of almost $860 million became effective in December, covering a $600 million loan from Santander and HSBC that supports payments under five renewable energy power purchase agreements.
The outlet adds that MIGA managing director Tsutomu Yamamoto said the support for Codelco’s shift to low-cost renewable power is meant to help ensure copper needed for grids, renewables, and electric mobility is produced in a financially efficient and sustainable way.
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