BNY Mellon, a global leader in investment management and investment services, has been appointed by the Republic of Chile as trustee for Latin America’s first sovereign green bond issuances for a total aggregate amount of approximately US$2.5 billion, issued both in the U.S. and European markets pursuant to Chile’s Green Bond Framework.
The development of the Green Bond Framework was led by the Chilean Ministry of Finance, and is the result of a joint effort with the Ministries of Agriculture, Energy, Environment, Public Work and Transportation. Chile announced that it intends to invest an amount equal to the proceeds from the sale of the green bonds into projects that may qualify as “eligible green expenditures” under the Green Bond Framework, such as renewable energy projects, infrastructure for electrified transport, water management projects and eco-friendly buildings.
“As a leading corporate trust service provider, this collaboration with the Republic of Chile and the Chilean Finance Ministry reinforces our long-standing commitment to helping bond issuers in Latin America and overall globally. BNY Mellon supports green and sustainable finance and is proud to work alongside corporates, banks and sub-sovereign entities to encourage social and environmental sustainability,” said Hector Herrera, head of Corporate Trust, Americas Business Development at BNY Mellon.”
The Minister of Finance, Felipe Larraín, highlighted the success of the operations stating “the issuance of our first Green Bond demonstrates our strong commitment to move forward with concrete actions to face climate change. In an international context of greater financial turbulence, global markets have rewarded us with historically low rates, even below those estimated by secondary market pricing.”
About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of June 30, 2019, BNY Mellon had $35.5 trillion in assets under custody and/or administration, and $1.8 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.