Chile has placed a $2 billion unsecured 20-year sustainability-linked bond (SLB) that will be earmarked for general government purposes, the first debt of its kind from a sovereign issuer, reported IFR, a Refinitiv financial service.
Chile established a VMS framework for supply, setting targets on two key indicators: absolute greenhouse gas emissions (KPI 1) and share of non-conventional renewable energy generation in the national electricity system (KPI 2), the report added. .
The debt was placed at a yield of 4.346% and a spread of 200 basis points over the comparable US Treasury bond, according to IFR, less than the initial guidance in the area of 240 basis points.
BNP Paribas, Credit Agricole and Societe Generale are the leading placement agents.
Chile has a sovereign rating of A1/A/A- by the main risk rating agencies.
The objective of KPI 2 is that 60% of the total electricity generated in Chile comes from renewable sources in the year until December 31, 2032, while KPI 1 is linked to the amount of greenhouse gases emitted 2030.
Source: Gestion
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