Linklaters Spearheads ESG-Linked Bonds Across Latin America

Over the past year, Linklaters's Latin America team led by partner Conrado Tenaglia and counsel Alejandro Gordano has been at the forefront of environmental, social, and governance (ESG) capital market deals across Latin America.

The firm has led a number of ESG "firsts" in the Latin American capital markets including:

• The first international sustainability-linked bond out of Peru
  SMI, the leader in rigid plastic packaging solutions in Latin America, issued the notes under its Sustainability-Linked Bond Framework with two sustainability targets related to the percentage of recycled PET content in preforms and thermoforming products and the tons of post-consumer waste managed by SMI in its operation.
  
• The first exchange offer in Argentina replacing standard bonds with green bonds
  The new notes issued by Genneia, the leading renewable power company in Argentina, are expected to support the achievement of United Nations' Sustainable Development Goals related to renewable energy.
  

• The first emerging-market sustainability-linked bond
  Suzano, a leading Brazilian pulp and paper producer, issued the bonds under its Sustainability-Linked Securities Framework with a sustainability target related to reducing greenhouse emissions. The deal was led by partner Matthew Poulter.

Since January 2021, Linklaters has advised the Republic of Chile on six SEC-registered offerings and one 144A/Regulation S offering of market-leading bonds for an aggregate of approximately US$17.9bn, including:

• The Republic of Chile's landmark green and social bond offering
  The series of ESG bonds included the largest sustainability bond issued by a Latin American sovereign.
  
• The Republic of Chile's first sustainable bond offering
  The Formosa bonds were also listed on the Taipei Exchange and obtained the lowest coupon by a sovereign issuer of a Formosa bond and were also the first sustainable bond listed on the Taipei Exchange by a sovereign issuer.
• The Republic of Chile's SEC-registered offering of dollar-denominated bonds
  These bonds totaling US$2.0bn also represented the first sovereign in the region to issue bonds covering green, social and sustainability themes.
• The Republic of Chile's international offering of Euroclearable peso-denominated social bonds
  This was the third offering of peso-denominated notes through Euroclear by the Republic of Chile, after they became Euroclearable in 2017.
• The Republic of Chile's euro- and dollar-denominated social bond new offerings
  This landmark deal was comprised of two new series euro-denominated social bonds and also included a new series of dollar-denominated social bonds.
• The Republic of Chile's issuance of social bonds in international markets
  This new offering was comprised of a euro- and dollar-denominated social bond totaling approximately US$2.1bn.

Linklaters continues to lead the growth of the green and social bonds market in Latin America and continues to play a key role in cutting-edge capital market deals in the region.

In addition to Conrado Tenaglia and Alejandro Gordano, the Linklaters team also includes associates Monica Perez-Banuet Farell and Juan Mata, with tax assistance from Counsel Matthew Brigham and associate Matthew Russo.