Chilean Ministry of Finance publishes new Sustainability-Linked Bond Framework

As part of the commitment to sustainable development, the Chilean Ministry of Finance recently published the Sustainability-Linked Bonds Framework (SLB Framework). The objective of this SLB Framework is to provide clear and transparent information to the market in relation to all future Green, Social, Sustainable and Sustainability Linked Bonds (SLBs).

This SLB Framework is aligned with the ICMA Sustainability-Linked Bond Principles published in June 2020, and complies with the five main components outlined therein: Selection of Key Performance Indicators (KPIs); Calibration of Sustainability Performance Targets (SPTs); Characteristics of the bonds; reports; and Review and Verification.

The Government of Chile intends to issue sustainability-linked bonds whose coupon is linked to the achievement of sustainability targets for two KPIs: Absolute Greenhouse Gas Emissions (MtCO2e) and Share of Generation of Non-Conventional Renewable Energy in the National Electric System.