Chile, the first country to issue a sustainability bond BNP Paribas bank supported Chile in the development of a Bond Linked to SustainabilitySustainability-Linked Bond (SLB)which has a value of US$2,000 million, at a rate of 4.34% and matures in 2042.
(Growth and inflation, the challenges of Gabriel Boric).
This bond follows the Principles developed by the International Capital Markets Association (ICMA), and includes two KPIs related to both this scheme and its interest rate:
(Boric: ‘we are going to recover the economy without inequality’).
The first, about the reduction of carbon dioxide emissionsconsists of reaching 95 million equivalent tons of CO2 by 2030, and a carbon budget of no more than 1,100 equivalent tons of CO2 for the period between 2020 and 2030.
In the second, related to the non-conventional renewable energiesit is agreed that, by 2028, 50% of electricity generation will be of this type and, by 2032, this figure will increase to 60%.
The market reacted positively, achieving an oversubscription of four times the value of the bond, which reflected the interest of investors who are looking for financial structures that support a transition towards more sustainable economies.
BRIEFCASE
