Green Bond Fact Sheet
Republic of Chile

Date: 19/06/2019

Issue date: 17-06-2019 Maturity date: 25-01-2050 Tenor: 31Issuer Name

Republic of Chile

Amount Issued

USD1.4bn

Country of risk

Chile

CBI Database

IncludedIssuer Type1

Sovereign

Bond Type

Sovereign Green Bond

Green Bond Framework

Link to framework

Second party opinion

Second Party Opinion

Certification Standard

Climate Bonds Standard Version
2.1 including Sector Criteria for:

Assurance report

Pre-Issuance Verification

Vigeo Eiris

Green bond rating

N/A☒ Energy☒ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ Waste to energy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Buildings☐ Certified Buildings☐ HVAC systems☒ Energy performance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☒ Transport☒ Electric vehicles☐ Low emission vehicles☐ Bus rapid transit☐ Passenger trains☒ Urban rail

☐ Freight rolling stock☒ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Water & wastewater☒ Water distribution☐ Water treatment☐ Wastewater treatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience••••
Certification Verifier

Low Carbon Transport
Low Carbon Buildings(Upgrades)
Water Infrastructure
SolarUse of Proceeds☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Industry: components ☐Adaptation & resilience☐ Land use &agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose & paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation & resilience☐ ICT☐ Industry: process

Issue details
Reporting

Every year in April, until full allocation of the proceeds, the Chilean Government will publish anannual report with details on the allocation of the proceeds. These reports will have details on theprojects funded, the remaining balance of unallocated proceeds, the percentage balance between
refinancing and new financing, and the percentage of co-financing per project. These reports will bereviewed by an independent external verifier.
Throughout the term of the bond, an impact report will also be produced annually. These reports
will have qualitative descriptions and quantitative impact indicators where appropriate.

Company information

Chile has the highest sovereign credit rating in Latin America. It is one of the most prosperous
countries in South America and is the only South American country in the OECD.
In November 2019, Chile is hosting the 25th annual UN Climate Change Conference of the Parties("COP25"). As part of its national policy goals on climate change and the environment, theGovernment of Chile took a leading role in climate finance by being the first country in SouthAmerica to issue a sovereign green bond. The Government prepared its Green Bond Framework inconjunction with the Inter-American Development Bank ("IADB").
Chile's Nationally Determined Contribution "NDC" as part of the Paris Agreement includes a 2030
GHG/GDP intensity target that is 30% lower compared to 2007. In June 2019, the Government
announced that they are considering a 2050 net zero emissions target. They have also announced
that the country would close all its coal power generation facilities by 2040. Currently, Chile's
electricity generation mix has a 40% contribution from coal power.
In November 2017, the Ministerial Council for Sustainability approved the Climate Change
Mitigation and Adaptation Plan for Infrastructure Services. This latest plan is the first of its kind in
Latin America and will help the government adjust the designs of planned infrastructure to mitigate
the worst impacts of climate change at the community, regional and national level.

Firsts, records andcertificationsProceeds description

This is the first Sovereign Certified Climate Bond to be issued in the Americas. It is also the second
sovereign Certified Climate Bond. Overall, three countries have now issued Certified Climate Bonds(Netherlands in May 2019, Nigeria in December 2017)
The proceeds will be used to finance and refinance the following:• Electric trains (urban metro), electric buses and dedicated infrastructure for electrified public
transport,• Solar projects,• Building construction and retrofits with an associated 30% CO2 emissions reduction target
based on the Chile national building certification scheme "Certificación Edificio Sustentable"(CES), and• Water distribution network monitoring equipment.

Climate Bonds view

This issuance is a huge step forward for the Latin America region. The Government of Chile’s
intention is that this will kickstart the green bond and wider green finance markets in Chile and theregion.
In April 2018, the Santiago Exchange also introduced a Green and Social Bonds Segment.

Underwriters
Deal comments

Credit Rating

A+ (S&P, Moody’s)

Pricing summary

3.53% coupon, which is 95bp over 30-year US Treasuries. This is the lowest yield ever obtained for
30-year Chilean debt

Investors summary

Several European investors were interested. There was interest from up to 40 specialist ESG
investors.

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign