Chile has become the first country in Latin America to issue a sovereign green bond.
The country sold $1.42 billion in 2050 notes at a historically low rate of 3.53% in mid-June.
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.
