Chile's Social Bond Issuance: A Beacon of Sustainable Finance

Chile's Ministry of Finance has announced the issuance of social bonds in the international markets, totaling approximately US$2.1 billion. This operation, executed in two subsequent transactions, consisted of a €918 million bond in the EUR market and a US$1 billion bond in the US dollar market. Both operations were oversubscribed, with the EUR bond receiving 4.1 times the allocated amount and the USD bond receiving 5.0 times. This issuance is a testament to Chile's commitment to sustainable finance and its leadership in the region.



Chile's issuance of social bonds aligns with its sustainable finance goals by addressing social challenges and supporting households, education, and essential health services. This issuance reaffirms Chile's leadership in sustainable finance, as it is the only country in the Americas to have issued green, social, and sustainable bonds since 2019, 2020, and 2021, respectively. With this issuance, Chile has issued a total of approximately US$25.7 billion in labelled bonds, representing 24.6% of central government debt, one of the highest shares in the world. This demonstrates Chile's commitment to sustainable and responsible investing, enhancing its reputation among investors and international organizations.

The issuance of social bonds also diversifies Chile's investor base, attracting investors with ESG mandates and those interested in supporting social causes. The high demand for these bonds, with the 2029 bond receiving 4.1 times the allocated amount and the 2071 bond receiving 5.0 times, suggests a strong investor appetite for social bonds. This reflects Chile's commitment to addressing social issues, such as supporting households, education, and essential health services, through its labelled bond issuances.



In conclusion, Chile's issuance of social bonds in the international markets is a significant step towards achieving its sustainable finance goals. This issuance not only aligns with Chile's commitment to addressing social challenges but also enhances its reputation among investors and international organizations. The high demand for these bonds indicates a strong investor appetite for social bonds, further demonstrating Chile's leadership in sustainable finance. As Chile continues to issue labelled bonds, it is essential to monitor the impact of these issuances on its reputation, investor base, and overall commitment to sustainable and responsible investing.