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Chile places US$2 billion in 20-year debt linked to sustainability

Chile places US$2 billion in 20-year debt linked to sustainability

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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