Chile lines up LatAm's first sovereign green bond

Chile lines up LatAm's first sovereign green bond

Bonds Debt Capital Markets Corporate & Sovereign Strategy Economy & Policy Fixed Income Renewable Project & Infrastructure Finance Politics Chile

Chile is looking to issue Latin America's first sovereign green bond when it goes to the cross-border bond market later this year, Finance Minister Felipe Larraín told LatinFinance.

"We will likely tap the international markets in the second half of the year," Larraín said. "It is likely that we will go for a green bond as part of our issuance."

Chile could raise between $1.5bn and $2bn from the sale of international bonds this year, he added.

Chile's finance officials are finalizing the green bond certification process and they have not decided if they will issue the notes in dollars or other currencies.

Officials said they have hired the banks to underwrite the bond sale, but they declined to name them.

The finance ministry said in January that it planned to issue $8.7bn in bonds this year, split between $7.2bn in local notes and $1.5bn in the international markets.

Chile, the highest rated sovereign issuer in Latin America, sold $1.02bn in 10-year bonds at 3.24% and €830m ($935m) in 2029 notes at 1.44% in January last year.

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