Chile will issue a second green bond this week, shortly after becoming the first country in the Americas to use these instruments.
Unlike the previous operation, in which the country issued a bond in dollars for US$1.4bn, this second issue will be made in euros, finance minister Felipe Larráin was quoted as saying by Diario Financiero.
He added that the operation could take place as early as Tuesday and he said he was optimistic about the reception from the market, highlighting the 3.53% interest rate obtained by Chile with the first green bond issue, “the best rate obtained by an emerging country during 2019,” he said.
Although the Santiago stock exchange launched its own guidelines for green bonds last year, Larraín said that a roundtable with players from the public and private sectors will be set up “to incorporate the best international practices in green finances,” the finance ministry said via Twitter.
GOOD PRECEDENT
In a separate report, credit rating agency Moody’s highlighted Chile’s first green bond issue as a “strong precedent for future issuances,” adding that the strong appetite shown in the market “indicates that the sovereign has a ready pool of funding to support its commitment to combat climate change.”
The agency also noted that Chile’s strong performance in the green bond market is also a reflection of “favorable global market conditions enjoyed by a number of emerging market issuers.”
Source: BNAmericas