Soc Gen advises on sustainable sovereign bond

Societe Generale say it has acted as bookrunner and advisor for the first ever sustainability linked sovereign bond.

Soc Gen says the $2bn 20-year bond for the Republic of Chile is the first sustainability-linked offering by Chile, as well as the first sustainability-linked bond ever issued by a sovereign globally. The transaction won a $6bn final orderbook (3x oversubscription) at a final landing level of T+200bps. The new bonds are the first debt offering under the Republic of Chile’s new SLB Framework and follows Chile’s issuance of green bonds in 2019 and sustainable bonds in 2020.

Chile’s sustainability-linked bonds were issued with a coupon rate tied to the achievement of sustainability performance targets: (i) Absolute Greenhouse Gas Emissions (MtCO2e), and (ii) Share of Non-Conventional Renewable Energy Generation in the National Electric System.