Leading paper, pulp and forestry company CMPC completed a $500 million offering of green sustainability-linked bonds, the first ever hybrid issuance of this type by a Latin American issuer. In keeping with the green bond nature of the issuance, an amount equal to the net proceeds of the bonds will be used for designated green projects, including those related to sustainable water management, energy efficiency and pollution prevention and control. The sustainability-linked nature of the bonds is reflected in the fact that the interest rate on the bonds is subject to increase if CMPC does not reduce its total greenhouse gas emissions by 50 percent (compared to a 2018 baseline) by 2030.
Based in Santiago, Chile, CMPC has production plants in eight countries in Latin America and exports to more than 45 countries around the world.
The S&C team advising CMPC included Werner Ahlers, Benjamin Kent, Renata Mascarenhas and Dylan Ottney. Jeffrey Hochberg, Saul Brander and Tristan Hood advised on tax matters, Sam Saunders advised on sustainability matters and Kirsten Rodger advised on U.K./EU matters.
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