Santander Chile issues first green bond under its ESG Framework to finance green mortgages
27 October 2023 - 3:00AM
Banco Santander Chile's (NYSE: BSAC) announced its first green bond
under its ESG Framework to finance green mortgages.
Santander Chile placed its first green bond
under its ESG Framework incorporating ESG (Environmental, Social
and Governance) criteria, focusing on the green mortgage product.
The instrument was placed privately to a Japanese investor with the
advice of Daiwa Securities Capital Markets, for an amount of JPY
8,000 million, equivalent to US$ 53 million, for a term of two
years and with a rate of 0.845%. The objective of the transaction
is to refinance or finance new green mortgage operations, a product
delivered by the Bank for the purchase of homes, based on energy
efficiency certifications existing in the industry, and that
benefits clients with a preferential rate. This is the first green
bond with use of funds for green mortgages in the country.
This portfolio has an approximate size of Ch$ 86
billion and is expected to continue growing in the coming years as
there are also more units that have energy efficiency
certification. There are currently 58 real estate projects that
have environmental certifications that meet the requirements
established in the ESG Framework. Most of these projects have CEV
certification, promoted by the Ministry of Housing and Urban
Planning, between A+ and B.
Additionally, Santander makes a contribution to
NGOs that seek to conserve the biodiversity of Chilean ecosystems
that are part of the “Huella Program”. In this way, the product
aligns with the purpose of helping customers move towards a greener
economy and supporting the protection of the country's
biodiversity.
For Román Blanco, CEO and Country Head of
Santander, “looking for concrete ways that contribute to the fight
against climate change is one of Santander's great objectives. It
is a global commitment that characterizes us, aware that we must
continue to advance towards increasingly responsible management of
our business, in harmony with the protection of our planet and the
sustainable development of the communities where we are present."
The executive also maintained that "the interest shown by investors
reflects that these types of alternatives are increasingly in
demand, so we hope that it will be an instrument that continues to
expand both locally and internationally."
Also, Soledad Ramírez, Manager of Santander's
Sustainable Finance and Climate Change Office, pointed out that
“traveling along the path of responsible banking implies being
innovative and demanding when it comes to finding new forms of
financing that contribute to the transition towards a greener
economy. In this context, having an ESG Framework gives us the
necessary criteria that we must consider for this type of
operations.”
About Banco SantanderBanco
Santander Chile is the largest bank in the Chilean market in terms
of loans and assets. As of June 30, 2023, we had total assets of
Ch$ 68,681,981 million (U.S.$ 85,752 million), outstanding loans
(including interbank loans) at amortized cost, net of allowances
for loan losses of Ch$ 38,149 million (U.S.$ 47,783 million), total
deposits of Ch$ 28,164,399 million (U.S.$ 35,164 million) and
shareholders’ equity of Ch$ 4,168,518 million (U.S.$ 5,205
million). The BIS capital ratio as of June 30, 2023, was 17.5%,
with a core capital ratio of 11.0%. As of June 30, 2023 Santander
Chile employed 9,162 people and has 260 branches throughout Chile.
Banco Santander Chile is one of the companies with the highest risk
classifications in Latin America with an A2 rating from Moody's, A-
from Standard and Poor's, A+ from Japan Credit Rating Agency, AA-
from HR Ratings and A from KBRA, all have a Stable Outlook.
CONTACT INFORMATIONCristian VicuñaChief
Strategy Officer and Head of Investor RelationsBanco Santander
ChileBandera 140, Floor 20Santiago,
ChileEmail: irelations@santander.clWebsite: www.santander.cl
Banco Santander Chile (NYSE:BSAC)
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