CHILE - CMPC has become the first Chilean company to issue a Sustainability-Linked Bond (“SLB”) in the international market for US$ 500 milllion over a 10-year term.

The bond was in high demand by global investors and sustainability-focused investors reaching a rate of 3.085%, equivalent to a differential of 135 basis points over the equivalent rate of the American treasury. 

This is the lowest dollar-denominated bond issue rate in CMPC’s history. BNP Paribas, Bank of America, Goldman Sachs and JP Morgan performed as Global Coordinators and Joint Bookrunners, while Santander and MUFG functioned as Joint Bookrunners. BNP Paribas and JP Morgan also jointly operated as Sustainability Coordinators for the issuance.

"The positive market reception of this issuance at a historic rate for CMPC demonstrates the trust that investors place in our company. This is another important step in line with our commitment to continue making progress on initiatives connected to sustainable finances," said CFO of CMPC Ignacio Goldsack. 

The CMPC Sustainability-linked Bond confirms our commitment to a business model that effectively addresses the risks related to climate change and the environment. The SLB connects performance of this instrument with fulfillment of two of the four environmental sustainability goals publicly declared by the company via key performance indicators (KPIs) described below:

∙ Greenhouse gas emissions: reduction of 23.5% of CO2 emissions by 2025.

∙ Intensity of industrial water use: reduction of 25% of industrial water use by 2025.

The SLB includes a mechanism through which the bond will be increased if the company does not meet its KPIs by the set date. This innovative structure is in line with the Sustainability-Linked Bond Principles published by the International Capital Market Association (“ICMA”) and offers incentives to help the Company achieve the results of its sustainability goals. DNVGL issued a second-party opinion (SPO) concerning the CMPC Sustainability Framework. Both documents can be found at the Company’s investor website (ir.cmpc.com).