Chile's Peso SLB issuance

2 minute read

Chile issued a Sustainability-Linked Bond (SLB) denominated in Chilean Peso, making it the fourth SLB it has issued in a month.

The bond uses the same KPIs as its previous issuances, namely absolute emissions and increasing female board representation. Our analysis of those SLBs found the structures offer enhanced materiality, setting a positive precedent.

The targets however are relatively achievable, so the option price for the Chilean Peso bond was worth 1.2-3.7% of issuance spread.

This moves Chile up to the silver medal position of total SLB issuance, just behind energy company, Enel.

This new issuance helps widen the available bonds for local currency investors. Away from G7 currencies, investors in Chinese Yuan, Swedish Krona, Mexican Peso, Australian Dollar and now Chilean Peso now have over $2bn equivalent of SLBs to choose from.