The USD 53-million facility is to restructure Empresas Iansa’s debt.

Thursday, 19 May 2022.
Empresas Iansa and Banco Santander Chile have signed a USD 53-million ESG-based syndicated loan facility to restructure Iansa’s debt.

Loan interest is pegged to three environmental targets that bear on Empresa Iansa’s strategy. First, Empresa Iansa must reduce CO2 emissions by 19%. Second, it has to expand irrigation technification in hectare plots of beetroot to generate significant water savings. And third, it must raise waste revaluation to 86% by 2025 at its nine plants across Chile and Peru.

For this facility, Moody’s ESG Solutions (formerly Vigeo Eiris) reviewed the materiality and objectives of the targets that Empresas Iansa had proposed.

Empresas Iansa is a leading food company in Chile. Founded over 68 years ago, it has a major presence in Chile and abroad, with industrial, retail and agricultural operations. “At Empresas Iansa, we have a clear strategy to continue to grow in a sustainable way through proper care for the environment and social development. To act against climate change, we have three strategic objectives that this ESG loan facility is linked to: reducing greenhouse gas emissions, decreasing water use and raising waste revaluation across our operations. We have also pledged to pursue seven Sustainable Development Goals in the UN’s 2030 Agenda,” says Vivian Budinich, Empresas Iansa’s head of corporate marketing and sustainability.

This deal has cemented Banco Santander’s leadership of sustainable finance in Chile. “More customers are choosing to link their borrowing to ESG targets. As a bank, we seek to support companies like Empresas Iansa, which have sustainability in their DNA. We’re helping promote a circular economy and seeking out cleaner production methods,” explains Soledad Ramírez, senior financial adviser at Santander Corporate & Investment Banking.

Banco Santander is a leader in ESG-linked financial instruments. Empresas Iansa joins Aceros AZA, Cristalerías Toro, Casaideas, Oxiquim and other companies that Santander has supported with loans rooted in sustainability and social well-being.

This facility is another example of Santander’s commitment to contributing to the United Nations Sustainable Development Goals and running its business responsibly. It is supporting its customers’ transition to a green economy by mobilizing green finance of €120 billion from 2019 to 2025 and €220 billion between 2019 and 2030 to help fight climate change.