Caja Los Heroes successfully raised UF 1 million (approximately US$ 40 million) through the issuance of its first Social Bond at the Santiago Exchange, becoming the first institution in the social security industry to issue this new type of bond.
The issue was aimed at financing financial inclusion projects of the Caja Los Heroes, through the refinancing and growth of social credits, and was placed at a rate of 2.54%., with a 6-year maturity, considering 2 years of grace.
The Social Bonds raise capital for funds to be used in the financing of projects with a positive impact on a certain group of the population.
With this issuance, Los Héroes reaffirms its commitment to a sustainable management of its business, in line with the Sustainable Development Goals of the United Nations.
"For Los Héroes, the decision to opt for this alternative has to do with the social role of the Compensation Funds, as well as with the positive social impact of financial inclusion, and with the sustainability policies we currently have", said Alejandro Muñoz, CEO of Caja Los Héroes.
On this occasion, the CEO of the Santiago Exchange, José Antonio Martínez, celebrated Caja Los Héroes’ successful placement, the third operation carried out in the Green and Social Bonds Market, launched in early 2018.
"This initiative is part of the Santiago Exchange objective to help the development of a more competitive and diverse capital market. Through it, we seek to offer new financing alternatives, meet the demand of investors and provide an option to those who have environmental or social development projects, "said Martínez.
Regarding the management of Caja Los Heroes in terms of financial inclusion, 54% of the loans granted have been aimed at people over 65 years of age and 60% for women. Also, 60% of these social loans have been for people who earn less than $400.000 pesos.
The social credit system has the most solid and complete regulation of the entire financial sector to prevent over-indebtedness and favor a healthy debt practices. The regulations of the Superintendency of Social Security limits the maximum percentage that a person can pay with respect to their remuneration (25% in the case of workers in the private sector, 15% in the public sector and between 5% and 25% in the case of pensioners depending of the amount of the pension).