The Chilean water utility company, Aguas Andinas, successfully issued its second Green and Social Bond at the Santiago Exchange, raising US$ 83 million, through a 25 year -term bond with a 2% p.y. rate. Scotiabank acted as exclusive placement agent for this offering, and the demand exceeded 2,7 times the offer to the market.
The company will allocate the funds in different projects that make a positive impact on the environmental and social area for the community, such as increasing the capacity to produce drinking water, investing in resilient infrastructure and increasing wastewater treatment capacity.
This is the second green and social bond issued by Aguas Andinas and reaffirms the company’s commitment,to incorporate environment, social and governance (ESG) factors into its development. The CEO of Aguas Andinas , Narcís Berberana said they are convinced that sustainable development is the way to guarantee a good future.
The Green and Social Bonds Segment of the Santiago Exchange provides the market with a new financing alternative within the Fixed Income Market, as well as the procedures for certification and monitoring of green and social bonds through a Third-party Verifier accredited by the Climate Bonds Initiative. "Green bonds are a way to accommodate the challenges we have as a society, according to the new demand of the investors, who evaluate companies for factors that goes beyond their performance or financial results”, said José Antonio Martínez, CEO of the Santiago Exchange.