S&C advised CMPC in its landmark offering of $500 million of hybrid green and sustainability-linked bonds, which won “Sustainable ESG Deal of the Year” at the LatinFinance Deal of the Year Awards. The transaction marked the first time a Latin American company had made such an offering.
CMPC is a leading paper, pulp and forestry company based in Chile, with production plants in eight countries across Latin America. In accordance 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, such as 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 by 2030.