Fitch rates Chile sustainability-linked bonds A-

Fitch Ratings said it assigned an A- rating to Chile's CLP 1.75tn euro-clearable sustainability-linked bond. The bond carries a coupon of 5.3% and matures in 2037.

“Similar to the other recent U.S. dollar- and euro-denominated SLB issuances, the new bond is tied to sustainability performance targets related to Chile's greenhouse gas emissions reduction and a rise in the share of women on company boards.

“If Chile does not meet targets, it will be required to pay investors a higher coupon. The bond could see an annual coupon step-up of 15 bps in 2034 if it fails to deliver on either of its social or environmental targets and 30 bps if it falls short of both,” Fitch said in a press release.

The rating is in line with Chile’s A- long-term issuer default rating, Fitch said.

Chile will use the proceeds for general government purposes.

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