Chilean CMPC issues green bond for about 250 million dollars

CMPC, a Chilean holding in the forestry and paper sector, placed its fourth green bond for an amount in local currency equivalent to nearly 250 million dollars on the Santiago Stock Exchange, reaching a total stock of 2.2 billion dollars in environmental financing (46% of the company’s financial liabilities).

The 20-year term bond obtained an effective placement rate of 3.54% per year with a spread (premium on Chilean Central Bank bond) of 0.94%, the lowest for Chilean corporate issuer since year 2019 (in a 20-year term issuance).

The proceeds obtained in this transaction will finance environmental initiatives such as the BioCMPC project (expansion and modernization of the Guaíba Plant in Porto Alegre, Brazil), which considers significant reductions in greenhouse gas emissions and in water usage intensity. Additionally, it will also finance innovation projects in structural wood, modernization of effluent plants, conservation and restoration projects, among others.

This instrument is issued under the Sustainable Financing Framework published by the CMPC in March 2022, which is aligned with the criteria established in the Green Bond Principles (GBP) coordinated by the International Capital Markets Association (ICMA).