Republic of Chile issues 20-year Social Bond

Crédit Agricole CIB acted as joint bookrunner on Republic of Chile's US$1.7 billion 20-year Social Bond. It is the 4th time in the past two years that the Bank is joint bookrunner for Chile's bonds.

Photo of Santiago de Chile

On May 5th, 2021, the Republic of Chile issued a total of US$2 billion of SEC-registered bonds, consisting of a US$1.7 billion 20-year Social Bond and a US$300 million reopening of its 2031 maturity.

This 20-year Social Bond issuance leverages Chile’s Sustainability Bond Framework, which lays out eligible Green and Social expenditures and guides the issuance of Chile’s Social, Green, and Sustainability Bonds. Additionally, this issuance included a US$300 million reopening of a 10-year bond. Total demand for both tranches reached approximately US$6.2 billion, more than 3 times the allocated amount. 

This transaction reaffirms Chile’s leadership in the market of thematic bonds, being the most active sovereign ESG issuer in the Americas, and is the country’s 4th issuance of ESG debt in 2021 at a very competitive yield. ESG debt now constitutes 16.6% of all of Chile’s outstanding debt stock.

Crédit Agricole CIB has previously acted as joint bookrunner on two previous green bonds of the Republic of Chile and recently led their inaugural US$1.5bn Formosa Sustainable bond last March. This represents the 4th time that Crédit Agricole CIB has acted as a joint bookrunner for Chile in the past 2 years.

Jorge Ramirez“Once again, we have been able to successfully coordinate and work as a team to support a strategic client of the Bank, while continue showing consistent results. Moreover, we have further consolidated our relationship with the Republic of Chile by helping it to maintain a leadership position among Latam sovereigns in the ESG market.”

Jorge Ramirez, Senior Country Officer Chile & Peru



Gordon Kingsley“Crédit Agricole CIB is very pleased to have shared our ESG expertise and access to our global distribution platform to provide the Republic with an ongoing ability to diversify and deepen its international investor base. 2021 has been a challenging year for Chile, but the success of this transaction reconfirms the confidence that international investors have in this issuer. This is our fourth issuance for the Republic, and we appreciate the confidence that Chile has placed with Crédit Agricole CIB and look forward to continuing to build our excellent relationship.”

Gordon Kingsley, Head of Latin America Debt Capital Markets Origination