Chile's Peso SLB issuance

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.

About the author

Josephine Richardson

Managing Director, Head of Research

Based in London, Jo leads AFII’s research and a global team supporting fixed income investors as they align their portfolios with climate and sustainability goals. She joined AFII after 18 years in fixed income markets at JPMorgan.