IFC and Santander Chile Launch $100M Green Loan to Boost Sustainable Building

A critical aspect of these KPIs is alignment with the Excellence in Design for Greater Efficiencies (EDGE) certification, a green building standard developed by IFC.

In a significant step toward advancing sustainable development in Latin America, the International Finance Corporation (IFC), a member of the World Bank Group (WBG), has committed a US$100 million green loan to Banco Santander Chile. The funds are dedicated exclusively to the development of environmentally sustainable buildings, marking IFC’s inaugural green loan in Chile that is focused solely on green construction. Additionally, this is the first time the Santander Group, operating in multiple global markets, has received a green loan of this kind.

The financing aims to support a growing pipeline of energy-efficient building projects across Chile, encouraging both environmental and economic sustainability in the real estate and construction sectors. As part of the agreement, the loan is structured with a sustainability-linked incentive, meaning the terms of the financing are tied to Santander Chile meeting specific Key Performance Indicators (KPIs) related to the growth and performance of green construction sub-projects.

A critical aspect of these KPIs is alignment with the Excellence in Design for Greater Efficiencies (EDGE) certification, a green building standard developed by IFC. EDGE is a globally recognized system that assesses and certifies resource-efficient building projects, ensuring they meet strict environmental criteria related to energy, water, and material efficiency.

A Milestone for Green Finance in Chile

“This investment marks an important milestone for the World Bank Group in Chile, and we are proud to achieve it with a long-standing partner like Santander,” said Jean-Marc Arbogast, IFC’s Country Manager for Chile. “Over the past year, IFC and Santander have worked closely to identify, finance, and monitor green construction projects. With this financing, we are helping the construction sector reduce carbon emissions and build a more resilient future for Chile.”

Chile’s construction sector accounts for a substantial portion of the country's carbon footprint, and greening this sector is a critical element of the nation's broader strategy to meet climate targets under the Paris Agreement. This partnership is expected to significantly accelerate progress by increasing access to long-term financing tailored specifically for green infrastructure.

Financial Sector as a Climate Catalyst

Soledad Ramírez, Head of Sustainability at Banco Santander, emphasized the transformative role of the financial industry in supporting sustainable development. “The financial industry plays a key role in facilitating the transition and development of a sustainable, low-carbon economy. In this regard, we have consistently worked on concrete actions that allow us to move toward that goal. That is why agreements like the one signed with IFC are fundamental to advance in this direction.”

Santander Chile’s efforts align with its broader commitment to becoming a net-zero bank by 2050. The green loan initiative is a concrete example of how financial institutions can mobilize capital toward climate-positive projects while promoting innovation and accountability in the marketplace.

Technical Assistance and Innovation Support

This initiative was made possible through IFC’s Advisory Services, which provided technical knowledge, innovation strategies, and capacity building for Santander Chile and its clients. This collaboration helped identify viable opportunities in the green building sector, structure the loan with performance-based sustainability criteria, and equip project developers with the tools necessary to achieve EDGE certification.

This level of advisory involvement is one of IFC’s key strategies in climate finance: pairing investment capital with targeted support that empowers financial institutions and developers to meet international sustainability standards.

Scaling Green Construction Across Chile

The $100 million facility is expected to catalyze a series of sustainable construction projects, including residential, commercial, and mixed-use developments that meet EDGE standards. By improving access to tailored financing and building technical capacity within the financial sector, the initiative aims to scale sustainable building practices across the country and eventually inspire replication in other Latin American markets.

Through strategic partnerships with key financial institutions such as Santander, IFC is contributing not only to the reduction of carbon emissions but also to the promotion of resilient infrastructure and long-term economic growth in emerging markets. The success of this pilot green loan could serve as a model for future collaborations worldwide, particularly in regions where green construction financing remains underdeveloped.

As countries like Chile continue to confront the challenges of climate change, investments such as this underscore the importance of blended finance, public-private cooperation, and innovative approaches to sustainable development.