MIGA guarantee boosts Banco Santander's financing capacity in Peru

The Multilateral Investment Guarantee Agancy has issued a guarantee of up to $246.6 million covering Banco Santander Peru's mandatory reserves with the Central Bank of Peru. The guarantee is issued for up to seven years, and will allow Banco Santander to increase lending in Peru, including for infrastructure and climate-benefitting initiatives.

Private credit growth has slowed in Peru over the past three years, and the medium-term outlook poses a significant challenge, especially in infrastructure. In parallel, infrastructure investment needs are significant, with an estimated $50 billion, or 25% GDP, needed between 2016-2025.