Vigeo Eiris provides second-party opinion on Chile’s first Green & Social Bond
Aguas Andinas issues Chile’s first Green & Social Bond to finance infrastructure, drinking water and sewage sanitation projects
Chilean water utility company Aguas Andinas has successfully issued its first green and social bond – the first of its kind to be traded on the Santiago Stock Exchange. The funds will be used to finance projects for drinking water supply, resilient infrastructure and sewage sanitation.
The fixed-income bond was issued for UF 1,500,000 with a rate of 1.80%, equivalent to a spread of 53 basis points, and has a term of 7 years with three years’ grace. Demand for the bond exceeded the amount offered to the market by 3.6 times.
Fanny Tora, Vigeo Eiris’ Head of South American Markets at Santiago Stock Exchange last week
Vigeo Eiris provided a Second Party Opinion on the sustainability credentials and management of the bond, based on due diligence on the issuer and the issuance (Green & Social Bond Framework and selected projects) according to the Sustainability Bond Guidelines and international standards on ESG, leading to a reasonable level of assurance (the highest level in our scale of assessment) on the sustainability of the Bond with positive contribution to sustainable development.