Scotiabank applauds its client, The Republic of Chile (“Republic”), on being recognized in The Banker’s Deals of the Year Awards 2024, in the category of Sustainable SSA Financing Deal of the Year. The Banker highlighted the Republic for its landmark sustainability-linked bond (SLB) issuances in 2023, priced at more than US$2.25 billion, which solidified the Republic’s profile as the third largest ESG bond issuer worldwide.
With The Banker’s Deals of the Year Awards dedicated to spotlighting the most noteworthy transactions across global markets, the prestigious publication’s judging panel focused on the Republic’s June 27, 2023 sustainability-linked bond transactions. They included a US$1.15 billion, 12-year, 4.950% tranche and a US$1.1 billion, 5.330% 30-year tranche, with KPI goals relating to Greenhouse Gas Emissions reduction and percentage of women attaining board member positions.
With Scotiabank serving as Joint Bookrunner, Sustainability Structuring Bank, Deal Manager and B&D Agent, the bonds received strong investor demand in North America and the EMEA, with order books oversubscribed by 6.5x and 7.4x respectively, ultimately allowing for significant price tightening from the initial price thoughts of 37 bps for both tranches.
As a result, in the Latam market, these transactions achieved the lowest new issue concession and the largest oversubscription for a sovereign issuer in 2023. They also represent the Republic’s second sustainability-linked bond USD issuance, the most for a Latam sovereign, and earning the Republic the position of first sovereign to issue an SLB with a social KPI.
Scotiabank’s sustainable SSA transactions across the Americas
This award from The Banker also demonstrates Scotiabank’s capabilities, which combine best-in-class products and services with local and international market expertise across the Americas. This client focus, and an ability to deliver innovative sustainable finance solutions, has helped Scotiabank earn participation in many notable mandates. For example, between January 2023 and February 2024, Scotiabank supported more than 26 sustainable SSA transactions across the Americas. In addition to Scotiabank’s support for the Republic of Chile’s recent USD- and Euro-denominated SLBs, Scotiabank acted as ESG Distributor on Mexico’s inaugural sustainable sovereign bond, served as Joint Bookrunner for the Republic of Uruguay’s SLB reopening, and acted as Joint Bookrunner on three USD-denominated sustainability bonds for the International Bank for Reconstruction & Development.
Scotiabank extends its deepest thanks to each of its clients for entrusting it to lead and support their sustainable finance objectives. Scotiabank’s Global Banking and Markets team, including its Sustainable Finance group, looks forward to continuing to support the global sustainable SSA financing market to further advance and mature in the months and years ahead.
