Santander Chile issues first sustainable bond to finance the Women SME segment

Rhea-AI Summary

On February 16, 2021, Santander Chile issued its first sustainable bond worth US$50 million at a 0.71% interest rate for a three-year term. This bond focuses on financing women-led SMEs, reinforcing the bank's commitment to financial inclusion and supporting the UN Sustainable Development Goals. The bond is part of a larger loan portfolio of approximately US$380 million dedicated to women entrepreneurs. Santander aims to promote growth among women-operated businesses while enhancing its position in global ESG sustainability indexes.

Positive

• Issuance of a US$50 million sustainable bond enhances financial inclusion for women-led SMEs.
• Bond reflects strong global investor interest and confidence in Santander's ESG initiatives.
• Supports the UN Sustainable Development Goals and contributes to a US$380 million loan portfolio for women entrepreneurs.

Negative

• None.

• The bond was for US$ 50 million, at a rate of 0.71% and a term of 3 years. This operation is part of the company’s efforts to contribute to the growth of businesses operated by women.

SANTIAGO, Chile, Feb. 16, 2021 (GLOBE NEWSWIRE) -- Santander Chile issued its first sustainable bond incorporating ESG (Environmental, Social, Governance) criteria, focusing on the segment of Women SMEs. The bond was a private placement from a Japanese investor with the advisory of Daiwa Securities Capital Markets, for an amount of US$50 million at a rate of 0.71% for three years. The objective of this transaction is to refinance or finance new loan operations to small and medium enterprises led by women.

This loan book has an approximate size of US$380 million, which is why access to this kind of financing is fundamental to continue promoting financial inclusion for women in Chile. With this new bond, Santander seeks to contribute to the growth of business operated by women, following the trends of the principal developed markets, and in line with its purpose to the progress of people and companies.
        
For Miguel Mata, CEO of Santander, “This sustainable bond is in line with the strategy the Bank is pursuing on a global basis in ESG issues and reflects our solid leadership position in sustainability indexes such as Dow Jones, Vigeo Eiris, MSCI, FTSE4Good and S&P IPSA ESG. The result of this operation also conveys the excellent perception from international investors, even in times of high uncertainty that we are facing in the world.”

With this new action, Santander Chile responds through concrete steps to the UN Sustainable Development Goals (UN SDG). In effect, in 2019 the entity defined 10 commitments to adhere to the UN SDG, among them, the commitment to help people progress and reap the benefits of financial inclusion through products and services and through education of these matters. The entity has as a global objective the financial inclusion of 10 million people between 2019 and 2025.

About Banco Santander Chile

Banco Santander Chile is the largest bank in the Chilean market in terms of loans and assets. As of December 31, 2020, the Bank had total assets of US$ 78.3 billion, loans net of provisions of US$ 46.9 billion, deposits of US$ 35.3 billion, and total equity of US$ 5.1 billion. The BIS capital ratio as of December 31, 2020 was 15.4%, with a core capital ratio of 10.7%. Banco Santander Chile is one of the companies with the highest risk classifications in Latin America with an A1 rating from Moody's, A from Standard and Poor's, and A+ from Japan Credit Rating Agency.

CONTACT INFORMATION
Robert Moreno
Investor Relations
Banco Santander Chile
Bandera 140, Floor 20
Santiago, Chile
Tel: (562) 2320-8284
Email: irelations@santander.cl
Website: www.santander.cl 

FAQ

What is the amount of the sustainable bond issued by Santander Chile on February 16, 2021?

Santander Chile issued a sustainable bond of US$50 million.

What is the interest rate and term of the bond issued by Santander Chile?

The bond has an interest rate of 0.71% and a term of three years.

How does the sustainable bond support women-led businesses?

The bond aims to refinance or finance new loans for women-led small and medium enterprises (SMEs).

How large is the loan book dedicated to women SMEs at Santander Chile?

The loan book for women SMEs is approximately US$380 million.

What is Santander Chile's commitment regarding financial inclusion?

Santander aims to promote financial inclusion for 10 million people between 2019 and 2025.

Which ESG sustainability indexes is Santander Chile part of?

Santander Chile is included in sustainability indexes such as Dow Jones, Vigeo Eiris, MSCI, FTSE4Good, and S&P IPSA ESG.