Awards “Deals of the Year 2021”:
- The specialized media Proximo named ISA as the winner in the categories of “Latin America Power & Overall Deal of the Year” after issuing its first green project bond for USD 1.2 billion, the largest transaction carried out in Latin America and the Caribbean in 2021.
Thursday, March 10, 2022.– Electric transmission company ISA Interchile has received a new financial recognition for the issuance of its first green project bond in July of last year for a total of USD 1.2 billion over 35 years to refinance commitments acquired during the construction phase of the 2×500 kV Cardones-Polpaico Transmission Line.
As part of Proximo’s “Deals of the Year 2021” awards, a specialized media in energy, infrastructure, and projects, the instrument issued by ISA’s subsidiary was distinguished as the best financial operation of the year at the regional level (Overall Deal of the Year) and as the most relevant agreement at the Latin American level in energy matters (Latin America Power). Thus, it becomes the only financial operation in the history of Proximo awards to receive these two awards.
“This is the largest issuance of green bonds for a project in the electricity sector in Latin America, also obtaining the lowest financing cost in dollars of any corporate project bond in the region, as well as being the longest-term in dollars,” explained Aquiles Vargas, Finance Manager of the company.
Gabriel Melguizo, General Manager of ISA Interchile, stated that “we are strongly committed to sustainable energy development in Chile, where energy transport is the axis of the desired decarbonization of the country’s energy grid, so receiving this double and unprecedented international recognition from Proximo makes us very satisfied, as it is a great boost to continue working in this line, in addition to reflecting the confidence that our company transmits to the financial markets.”
This debt instrument is historical for ISA Interchile, not only for its magnitude surpassing one billion dollars but also for the high rating granted by the main rating agencies and for its ESG certification since this transmission infrastructure enabled the start of the country’s Decarbonization Plan.
Carolina Botero, Vice President of Corporate Finance at ISA, explains that “in all our green bond issuances, we exceeded our expectations in terms of amount and rate. The success obtained demonstrates our solidity and the market’s confidence in ISA and its companies. Similarly, it ratifies our commitment to decarbonizing the economy in the region by financing green, environmentally responsible projects through which renewable energies are transported.”
ISA Interchile’s green bond was listed on the Singapore Exchange Securities and achieved a long-term BBB+ rating from Fitch Ratings, while Moody’s awarded it a Baa1 rating.
It should be noted that this double distinction adds to the one received by ISA’s subsidiary last February for the issuance of said green project bond, being awarded by the prestigious international publication LatinFinance with the ESG Deal of the Year award (best sustainable financial operation).
International Experience
ISA and its companies have been pioneers in placing this type of bond in the region. To date, they have issued green bonds worth more than USD 2.5 million. ISA CTEEP, the company’s subsidiary in Brazil, was the first company in the Transmission segment to issue green bonds for BRL 621 million. Likewise, the Consorcio Transmantaro subsidiary in Peru was the first to issue green bonds in the international capital market for USD 400 million, while in Colombia, ISA issued green bonds in 2020 for COP 300,000 million, generating an oversubscription of 2.54 times and becoming the first green bond issuance carried out by a real sector company in Colombia’s public securities market.
