BancoEstado Reopens Women Bonds for JPY 15 billion
The Chilean financial entity is the first one to issue a 10yr-bond in the Japanese market and the first Latin American to issue a bond based in Corporate Social Responsibility
Two months after issuing its first bond based in Corporate Social Responsibility (CSR) in Latin America, BancoEstado issued an additional JPY15 billion (approximately USD 147 millions) in 10 years fixed rate “Women Bonds”. With this reopening, the total aggregate principal amount outstanding for the Women Bonds is currently at JPY 25 billion.
BancoEstado’s CFO, Carlos Martabit, commented that “the original 10-year issue had an excellent reception by the market and investors. We are very pleased with the results of this reopening and honored that the Japanese investors want to share our views on supporting the inclusion of women in the Chilean financial system”. Mr. Martabit also added that “we continue to work on developing a long-term relationship with the Japanese investor community.”
Nippon Life Insurance Company (“Nippon Life”), an active investor in CSR investments, was one of the investors participating in the reopening. “Investments focusing on supporting the economic activities of women suit our philosophy as they match the highly social and public nature of our business. We expect that these investments will contribute to the empowerment of women and encourage loans for business women in Chile. Our company has a workforce of which approximately 90% are women, so we have placed supporting the empowerment of women as a crucial management strategy and focused on creating an environment promoting active participation by women. Since the establishment of the Credit Investment Department in 2014, we have actively been engaged in these types of investments on a global basis, and will continue that engagement in order to further enhance our policyholders’ best interests,” said Ms. Chizuru Yamauchi, Executive Officer at Nippon Life Insurance Company.
BancoEstado is the first Chilean issuer to access 10 year funding in the Japanese market and the first Latin American issuer to issue a bond based in CSR. This issuance confirms BancoEstado’s commitment towards the financial inclusion of Chilean women. Currently, approximately 53% of BancoEstado’s customers are women – 200,000 women have mortgage loans and around 4 million hold Cuenta Rut, among other products. Additionally, 38% of BancoEstado’s small business lending portfolio are for women run businesses, many of whom are already in the “Crece Mujer Emprendedora” program.