CMPC places green bonds for a total of $250 million

Cuatrecasas has advised Inversiones CMPC S.A. and Empresas CMPC S.A. on placing corporate green bonds for a value of US$250 million and with a maturity date of September 15, 2042. The issue is backed with collateral from Empresas CMPC.

The transaction involves a 20-year bond, obtained at an annual effective placement rate of 3.54% with a spread of 0.94%, the lowest for a Chilean issuer for 20 years since 2019. With this placement, CMPC achieves over US$2.2 billion in sustainable financing. 

Macarena Ravinet, expert in commercial law and partner at Cuatrecasas Santiago, said “the resources resulting from the placement will go towards refinancing the current corporate bonds issued by the company and to financing projects with environmental benefits, such as the BioCMPC project which involves significant reduction in greenhouse gas emissions and in the intensity of water use.” 

These kinds of bonds are issued under the framework of its Sustainable Financing project published by the company in 2022, which is aligned with the requirements established in the Green Bond Principles, coordinated by the International Capital Market Association.

The Cuatrecasas team in Santiago advising on this transaction was made up of Macarena Ravinet, Isidora Opazo, Fernanda Paredes and Rodrigo Stein.