EECL is a leading utility company in Chile and subsidiary controlled by ENGIE S.A. EECL is currently the fourth largest energy generator in the country, with 2.4 GW of installed capacity and more than 12 TWh in energy sales, in addition to being the third largest electricity transmission operator. The company is committed to the energy transition of Chile and plans to add 2.1GW of renewables, disconnect 0.8GW of coal, convert 0.7GW of coal to natural gas and/or biomass by 2027 for capex estimated at US$ 1.5 billion over the period.

The proposed facility consists of a 10-year unsecured corporate loan of up to US$200 million from IFC’s own account and a syndicated loan of up to US$200 million (US$ 114.5 million from MCPP investors and US$ 85.5 million from B lenders or Parallel lenders).

EECL will use the financing proceeds for solar and BESS assets throughout the country. The indicative projects identified for financing at the time of disclosure are located in the Antofagasta region.

 The proposed investment involves development and operation of renewable energy sub-projects, which are at different stages of development, with some already finishing construction and others yet to be designed and developed. The key E&S issue for this investment, therefore, is to assess the Company’s capacity, corporate systems and procedures to manage the E&S risks and impacts associated with the development of the renewable energy sub-projects in compliance with the applicable local regulatory requirements and those of the IFC Performance Standards / good international industry practices (GIIP).

EECL’s proposed pipeline of renewable energy projects includes solar PV and BESS sub-projects, none of which result in: a) significant involuntary resettlement, b) risk of adverse impacts on lands to which indigenous peoples maintain collective attachment, c) significant risks to, or impacts on, the environment including biodiversity, or d) significant occupational health and safety (OHS) risks. For these reasons, this investment is classified as ‘Category B’ according to IFC’s Policy on Environmental and Social Sustainability. The environmental and social risks and impacts associated with this Project are limited, site-specific and can be readily addressed through generally accepted mitigation measures as described in this document and the attached Environmental and Social Action Plan (ESAP).