Crédit Agricole CIB supports the Republic of Chile on its first Sustainability-Linked Bond with a standalone biodiversity KPI

The transaction included EUR 1.5bn Long 10 years Sustainability-Linked Bonds, alongside conventional EUR and USD tranches, and marks a significant milestone in sovereign sustainable finance.

The Sustainability-Linked Bond (SLB) is the first-ever SLB to feature a standalone biodiversity Key Performance Indicator, aligned with Chile’s Kunming-Montreal Global Biodiversity Framework “30x30” commitment. The bond targets both the expansion of terrestrial protected areas and the effective management of those areas, reinforcing the link between financing and biodiversity outcomes.

Both biodiversity-related Sustainability Performance Targets received the highest assessments from Sustainalytics, rated “Very Strong” and “Highly Ambitious”.

The sustainability-linked tranche was 3.4x oversubscribed, reflecting strong investor appetite for innovative, high-quality ESG sovereign instruments. The SLB also features an innovative step-up / step-down coupon mechanism, directly linking the bond’s financial characteristics to Chile’s performance against its biodiversity objectives.

Crédit Agricole CIB is proud to continue supporting the Republic of Chile, a global leader in sovereign sustainable finance, and to have participated in 100% of Chile’s internationally marketed Sustainability-Linked Bonds to date.