Chile’s state-owned copper giant Codelco has secured a US$500mn loan package backed by Italy’s export credit agency Sace, pledging to grow purchases from the European country as part of the deal.

Under the terms of the deal, Sace is guaranteeing a loan provided by Santander and Commerzbank on an untied basis.

The Italian agency’s support is provided under its Push strategy, which was launched in 2017 and aims to increase purchases of goods and services from Italy without tying financing to specific export contracts.

Codelco has committed to join matchmaking events organised by Sace and involving Italian businesses, Sace says.

“The financing aims to boost Italian exports in Chile by an average of 4% annually over the next three years by increasing Codelco’s Italian procurement and by fostering strong new business relationships with Italian companies operating in the mining sector,” it notes in a May 7 statement.

Sace’s head of Brazil and South America, Pauline Sebok, says the deal is the export credit agency’s first Push strategy facility in Chile, a “strategic and high-potential market for Italian companies”.

“This partnership reaffirms Sace’s commitment to promoting a sustainable energy transition while also supporting Italian businesses in diversifying their exports,” Sebok adds.

Wholly owned by the Chilean state, Codelco is one of the world’s largest copper producers and has previously tapped Japanese, Canadian and Korean export finance institutions for billions of dollars in financing.

Last month, the Japan Bank for International Cooperation backed a financing package worth US$666mn for Codelco and said the deal would secure long-term supply.

Global demand for copper is expected to soar amid a push to build electric vehicles, renewable energy equipment and data centres.

But according to UN research published this week, the global copper sector “faces mounting pressure from supply limitations, geopolitical uncertainties, increasing trade tensions and declining ore grades”.

UN Trade & Development estimates that investments of up to US$250bn will be required over the next five years, or long-term supply could fail to match demand.