Aguas Andinas issued the first green and social bond in the Chilean market

Aguas Andinas issued the first green and social bond in the Chilean market

Aguas Andinas successfully placed its first issue of green and social bonds on the Santiago Stock Exchange, inaugurating this fixed income segment in the Chilean market. The funds obtained will be used to finance projects that meet the requirements outlined in the Green and Social Bonds principles. These are projects with positive environmental and social impact. “We are very proud to be the first Chilean company to place a green and social bond in Chile, since this means that the investment decisions of the company have a very strong component in the positive impact on the community and the environment. the projects we are developing, “said Guillermo Pickering, chairman of the Aguas Andinas board. “Being able to issue a green bond is an acknowledgment that the company complies with basic principles of transparency, information and integrity,” he added. The president of the Santiago Stock Exchange, Juan Andrés Camus, welcomed Aguas Andinas to this market, which “opens up the possibility for different issuers and investors to register and negotiate corporate, banking and government bonds, with the objective of financing projects that have a positive impact on the environment, or on a certain group of the population or a combination of both, “he said. The issue for UF 1,500,000 was placed at a rate of 1.80%, equivalent to a spread of 53 basis points, with a demand that exceeded by 3.6 times the amount offered to the market. The placing agent was BBVA. The bonus has a term of 7 years, with three years of grace. This operation is the first of its characteristics carried out by a Chilean company through the Santiago Stock Exchange. The qualification of “Green and Social Bonus” guarantees that the funds obtained are used to finance projects with positive environmental and social impact, a use that is certified by the international rating agency Vigeo Eiris. Deneb Schiele, Head of Debt Capital Markets of BBVA Chile, entity that acted as financial advisor and exclusive placement agent of this first green and social bond in the local market, highlighted that “the Aguas Andinas bond was widely demanded by investors, which shows not only the great confidence of investors in the company but the growing interest in financing alternatives that promote greater environmental and social responsibility “. Schiele added that “we live in an environment in which companies are increasingly aware of the importance of sustainability, so we hope that green and social bonds will be consolidated as an alternative financing in Chile, as is happening. in other more developed markets. ” Placement of long-term bonds Aguas Andinas also placed long-term bonds, under the AD Series, for UF 2,000,000. The issue, for a period of 25 years, with a grace period of 23 years, reached a placement rate of 2.83%, equivalent to a spread of 57 basis points over the reference benchmark. The demand for this bonus was 2.6 times the amount offered. The environmental services company has an investment plan of $ 290,000 million between 2018 and 2019, with a focus on ensuring the supply of drinking water for the inhabitants of Santiago facing the consequences of climate change.

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