Chile’s first sovereign sustainable bonds stir Taiwanese interest
To date, the Republic of Chile has invested approximately USD 14.4 billion in thematic bonds, 54% green, 36% social, and 10% sustainable.
The so-called Formosa bond, dual-listed on the Taipei Exchange and the London Stock Exchange and maturing in 2053, is the first sustainable bond to be listed publicly on the Taipei Exchange by a sovereign. It also achieved the lowest coupon by a sovereign issuer of such bonds.
It follows the Middle East and North Africa’s first ever issuance of green bonds in October last year, and Europe’s first sovereign sustainability bonds, also totalling USD 1.5 billion and involving Linklaters, in September.
The offering, intended to broaden Chile’s investor-base, attracted strong interest from Taiwanese investors, which demonstrates a strong appetite for sustainable finance in Taiwan. Taiwan began engaging in sustainable finance activities in 2017, when the Taipei Exchange first introduced its green bonds scheme.
Crédit Agricole Corporate and Investment Bank, which has been active in Taiwan for four decades and the first foreign issuer to issue green bonds in Taiwan, acted as joint bookrunner and lead manager on the offering.
Crédit Agricole’s Taipei branch CEO, Benjamin Lamberg, said in a statement: “Taiwan is well-positioned for the development of this sector”, adding: “With increasing numbers of local institutional investors answering the call of responsible investments, demand for sustainable bonds have picked up quickly and the strong appetites for this Chile issuance affirms this trend.”