Chile makes 3rd sovereign green issuance: Record rates for Jan 2020 Climate Bonds certified transaction

Chile now accounts for a total of $6.228 billion in Certified SGB issuances (in dollars and euros)

Photo: Climate Bonds Initiative

The Government of Chile has continued its sovereign green program into 2020 with total green issuances reaching US$ 6.228 billion.

The latest SGB issuances from Chile in January include a new SGB in dollars issued for a total amount of US$ 750 million due in 2032 (12 years maturity), as well as the reopening of the green bond due in 2050 (30 years) issued in 2019, for US$ 900 million.

With historically low level rates in USD (2.571% for the 12-year bond and 3.275% for the 30 year-bond), the issuances are consistent with the Treasury Bond Placement Plan for 2020. The demand was equivalent to 2.5 times for the 12-year bond and 2.0 times for the 30-year bond.

In the euro market, Chile issued two other bonds. One bond due in 2040 for a total amount of €1,269 million and the reopening of the bond due in 2031, for a total amount of €694 million. This operation also included a portion for Liability Management.

Focus on Low Carbon Transport

All the 2020 proceeds will go to a selection of projects Certified according to the Climate Bonds Standards. These projects include the construction of the future Line 8 and the extension of Line 4 of Santiago’s Metro as well as a number of projects of the State Railways Company (EFE).

Ignacio Briones, Minister of Finance, Chile:

“Our green bond issuances in 2019 and 2020 are clear examples of Chile’s firm commitment to climate action. These are concrete steps in contributing to environmental protection, mitigation, as well as the development of the green asset class.”

Thatyanne Gasparotto, Head of Latin America, Climate Bonds Initiative:

"We congratulate Chile on its most recent Green Bond issuances, one more step towards consolidating the Green Finance agenda in the region. The first country to issue a Sovereign Green Bond in the Americas continues strong on its journey towards meeting the Paris Agreement goals."

The last word

What a great way to start in 2020.

With this 3rd green sovereign in January Chile has led the way for other nations at the very start of this new decade.

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