Empresas Copec’s forestry subsidiary, through a material fact sent to the Financial Market Commission (CMF for its Spanish acronym), reported the placement of a corporate bond for an amount of UF 20 million (Chile’s inflation-indexed unit). This became the largest in Chile’s history, reaching a demand of UF 35 million, equivalent to 1.75 times the offer.

The AG Series bond was issued with an annual interest rate of 3.97%, equivalent to a spread of 168 basis points above the reference rate, maturing on January 5, 2058.

This issue corresponds to the company’s first sustainable hybrid bond, an instrument that, due to its structure, rating agencies will consider up to 50% of the amount as “equity credit.” It should be noted that the bonds are subordinated to other financial obligations, allow for the deferral of interest payments at the company’s discretion (in which case, it may not distribute dividends while deferred interest remains outstanding), and cannot be prepaid before October 5, 2032.

The proceeds will be used for general corporate purposes, and ARAUCO will allocate an equivalent amount to green and/or social projects, in accordance with its Sustainable Financing Framework.

The transaction was advised by Link Capital Partners and Banco Santander Chile, and the bonds are rated A+ locally by Fitch Chile and Feller Rate.