Sovereign Sustainability-Linked Bonds: Chile Sets A High Bar

Djellil Bouzidi & Simon Mills

Research Organisation
Sustainable Futures

Report Date
April 28, 2022

Document summary

This supplement to the ninth edition of the Global Green Finance Index takes as it subject green-bonds, a product which has been credited with turbo-charging the green finance revolution. The particular focus of this report is the advent of a new type of green bond — sovereign sustainability-linked bonds, which have been pioneered by Chile.

Sovereign sustainability-linked bonds have been an issue of particular interest to Z/Yen ever since our founder, Professor Michael Mainelli, predicted their emergence, back in 2005. We are delighted with the success that Chile has met with this new financial product and believe that it will have a significant impact on sovereign debt markets as other nations join Chile to deliver sustainable growth.

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