Chile launches Latin America’s first sovereign green bond

The government will use $523 million from the bond issue to fund renewable energy projects including solar initiatives, infrastructure for electrified transport such as trains and buses, water management enterprises and eco-friendly buildings.

It will use $895 million to buy back bonds due between 2020 and 2047.

Chile’s minster of finance, Felipe Larraín, said the bonds were one of a number of fiscal measures intended to foster environmentally-friendly development in the country.

It is the second country to receive certification from the Climate Bonds Initiative – after the Netherlands – following evaluation of the country’s environment plans.