Entel successfully placed its first sustainable bond in the international market yesterday, for a total amount of US$800 million.
The placement of 144A/RegS bonds took place after an international road show with potential investors, which was carried out telematically. The bonds were placed in dollars, maturing in two equal installments in 2031 and 2032 at an annual interest rate of 3.05%, and as informed by the company in an Essential Fact sent to the Financial Market Commission, it will repurchase the same amount of bonds maturing between 2022 and 2026, thus extending the term of their maturities by an average of five years.
The bond was considered a success in the market, as demand exceeded US$2.64 billion. The issue was rated BBB- by S&P and BBB- by Fitch Ratings. The financial advisors and placement agents were the investment banks BNP Paribas, JP Morgan and Scotiabank.
Entel also explained that the funds raised will be used mainly to finance or refinance the development of projects for access to basic telecommunications infrastructure and essential services linked to digital inclusion, as well as renewable energy and energy efficiency initiatives, in line with the principles of eligible green and social projects defined by the International Capital Markets Association (ICMA). This, in addition to a voluntary early redemption offer of the bonds issued by Entel maturing in 2024, at an interest rate of 4.875% per annum and/or the bonds maturing in 2026, at an interest rate of 4.750%.
Entel’s Finance and Management Control Manager, Felipe Ureta, highlighted that the results obtained by the operation reflect the high interest of investors during the road show process. “We are very pleased with the success of our third international bond placement and first sustainable debt issuance. This demonstrates the confidence of investors in our company, based on a clear purpose, a consistent business strategy and a solid financial position”, he said.
Meanwhile, the company’s Sustainability Director Jimena Del Valle, highlighted that “more than a decade ago Entel set itself the challenge of making sustainability one of the pillars of its business, a decision that in late 2018 translated into a new purpose that made our role more visible: to bring technology closer and facilitate its use, generating opportunities for people, companies and society as a whole. And the projects associated with this bond issue are concrete proof that we take that commitment very seriously”.
The projects
In relation to the telecommunications infrastructure projects, mobile and fixed, the company detailed that they will invest in the implementation of the 5G network, in the expansion and strengthening of the 4G network, in the deployment of fiber optics, and in the operation of sites in rural areas. They will also invest in fixed wireless broadband services in areas without availability of wired services.
Regarding “green” initiatives, it reported that it will continue to invest in renewable energy to power its network, data centers and associated infrastructure
In relation to energy efficiency projects, he explained that they will continue to work on these initiatives at the network and data center level. These include the application of intelligence to energy use in the network and the use of specific software that optimizes electricity consumption by deactivating network sectors when there is no traffic; the incorporation of efficient technologies in the development of any network, fixed or mobile; adjustments in air conditioning devices to reduce electricity consumption, and the replacement of halogen beacons with LEDs. Regarding energy consumption in Entel’s data centers, the initiatives include more efficient ventilation and the implementation of air confinements in two of its data centers to reduce the energy consumption of the fans in the IT rooms. This, in addition to having certifications that certify compliance with the most demanding international standards in energy consumption.
Recognition of ESG criteria
In line with the growing importance of environmental, social and corporate governance (ESG) factors in the market, it is important to remember that the technology and telecommunications company was recently highlighted by the V.E’s Best Emerging Market Performers Ranking, linked to Moody’s ESG Solutions. In its latest version, it highlighted Entel as the only telecommunications company in Chile and one of the seven companies in the country that ranked among the 100 companies with the best performance and whose social responsibility approaches are the most advanced. This, in a reference universe of 855 companies from 31 different countries.
The company has also been highlighted for five consecutive years in the Dow Jones Sustainability Index, in its DJSI Chile and DJSI MILA Pacific Alliance categories. In fact, since 2016 it is the only Chilean telecommunications company in this index.
10 Sep, 2021
Entel successfully placed its first sustainable bond in the international market yesterday, for a total amount of US$800 million.
The placement of 144A/RegS bonds took place after an international road show with potential investors, which was carried out telematically. The bonds were placed in dollars, maturing in two equal installments in 2031 and 2032 at an annual interest rate of 3.05%, and as informed by the company in an Essential Fact sent to the Financial Market Commission, it will repurchase the same amount of bonds maturing between 2022 and 2026, thus extending the term of their maturities by an average of five years.
The bond was considered a success in the market, as demand exceeded US$2.64 billion. The issue was rated BBB- by S&P and BBB- by Fitch Ratings. The financial advisors and placement agents were the investment banks BNP Paribas, JP Morgan and Scotiabank.
Entel also explained that the funds raised will be used mainly to finance or refinance the development of projects for access to basic telecommunications infrastructure and essential services linked to digital inclusion, as well as renewable energy and energy efficiency initiatives, in line with the principles of eligible green and social projects defined by the International Capital Markets Association (ICMA). This, in addition to a voluntary early redemption offer of the bonds issued by Entel maturing in 2024, at an interest rate of 4.875% per annum and/or the bonds maturing in 2026, at an interest rate of 4.750%.
Entel’s Finance and Management Control Manager, Felipe Ureta, highlighted that the results obtained by the operation reflect the high interest of investors during the road show process. “We are very pleased with the success of our third international bond placement and first sustainable debt issuance. This demonstrates the confidence of investors in our company, based on a clear purpose, a consistent business strategy and a solid financial position”, he said.
Meanwhile, the company’s Sustainability Director Jimena Del Valle, highlighted that “more than a decade ago Entel set itself the challenge of making sustainability one of the pillars of its business, a decision that in late 2018 translated into a new purpose that made our role more visible: to bring technology closer and facilitate its use, generating opportunities for people, companies and society as a whole. And the projects associated with this bond issue are concrete proof that we take that commitment very seriously”.
The projects
In relation to the telecommunications infrastructure projects, mobile and fixed, the company detailed that they will invest in the implementation of the 5G network, in the expansion and strengthening of the 4G network, in the deployment of fiber optics, and in the operation of sites in rural areas. They will also invest in fixed wireless broadband services in areas without availability of wired services.
Regarding “green” initiatives, it reported that it will continue to invest in renewable energy to power its network, data centers and associated infrastructure
In relation to energy efficiency projects, he explained that they will continue to work on these initiatives at the network and data center level. These include the application of intelligence to energy use in the network and the use of specific software that optimizes electricity consumption by deactivating network sectors when there is no traffic; the incorporation of efficient technologies in the development of any network, fixed or mobile; adjustments in air conditioning devices to reduce electricity consumption, and the replacement of halogen beacons with LEDs. Regarding energy consumption in Entel’s data centers, the initiatives include more efficient ventilation and the implementation of air confinements in two of its data centers to reduce the energy consumption of the fans in the IT rooms. This, in addition to having certifications that certify compliance with the most demanding international standards in energy consumption.
Recognition of ESG criteria
In line with the growing importance of environmental, social and corporate governance (ESG) factors in the market, it is important to remember that the technology and telecommunications company was recently highlighted by the V.E’s Best Emerging Market Performers Ranking, linked to Moody’s ESG Solutions. In its latest version, it highlighted Entel as the only telecommunications company in Chile and one of the seven companies in the country that ranked among the 100 companies with the best performance and whose social responsibility approaches are the most advanced. This, in a reference universe of 855 companies from 31 different countries.
The company has also been highlighted for five consecutive years in the Dow Jones Sustainability Index, in its DJSI Chile and DJSI MILA Pacific Alliance categories. In fact, since 2016 it is the only Chilean telecommunications company in this index.
Entel successfully placed its first sustainable bond in the international market yesterday, for a total amount of US$800 million.
The placement of 144A/RegS bonds took place after an international road show with potential investors, which was carried out telematically. The bonds were placed in dollars, maturing in two equal installments in 2031 and 2032 at an annual interest rate of 3.05%, and as informed by the company in an Essential Fact sent to the Financial Market Commission, it will repurchase the same amount of bonds maturing between 2022 and 2026, thus extending the term of their maturities by an average of five years.
The bond was considered a success in the market, as demand exceeded US$2.64 billion. The issue was rated BBB- by S&P and BBB- by Fitch Ratings. The financial advisors and placement agents were the investment banks BNP Paribas, JP Morgan and Scotiabank.
Entel also explained that the funds raised will be used mainly to finance or refinance the development of projects for access to basic telecommunications infrastructure and essential services linked to digital inclusion, as well as renewable energy and energy efficiency initiatives, in line with the principles of eligible green and social projects defined by the International Capital Markets Association (ICMA). This, in addition to a voluntary early redemption offer of the bonds issued by Entel maturing in 2024, at an interest rate of 4.875% per annum and/or the bonds maturing in 2026, at an interest rate of 4.750%.
Entel’s Finance and Management Control Manager, Felipe Ureta, highlighted that the results obtained by the operation reflect the high interest of investors during the road show process. “We are very pleased with the success of our third international bond placement and first sustainable debt issuance. This demonstrates the confidence of investors in our company, based on a clear purpose, a consistent business strategy and a solid financial position”, he said.
Meanwhile, the company’s Sustainability Director Jimena Del Valle, highlighted that “more than a decade ago Entel set itself the challenge of making sustainability one of the pillars of its business, a decision that in late 2018 translated into a new purpose that made our role more visible: to bring technology closer and facilitate its use, generating opportunities for people, companies and society as a whole. And the projects associated with this bond issue are concrete proof that we take that commitment very seriously”.
The projects
In relation to the telecommunications infrastructure projects, mobile and fixed, the company detailed that they will invest in the implementation of the 5G network, in the expansion and strengthening of the 4G network, in the deployment of fiber optics, and in the operation of sites in rural areas. They will also invest in fixed wireless broadband services in areas without availability of wired services.
Regarding “green” initiatives, it reported that it will continue to invest in renewable energy to power its network, data centers and associated infrastructure
In relation to energy efficiency projects, he explained that they will continue to work on these initiatives at the network and data center level. These include the application of intelligence to energy use in the network and the use of specific software that optimizes electricity consumption by deactivating network sectors when there is no traffic; the incorporation of efficient technologies in the development of any network, fixed or mobile; adjustments in air conditioning devices to reduce electricity consumption, and the replacement of halogen beacons with LEDs. Regarding energy consumption in Entel’s data centers, the initiatives include more efficient ventilation and the implementation of air confinements in two of its data centers to reduce the energy consumption of the fans in the IT rooms. This, in addition to having certifications that certify compliance with the most demanding international standards in energy consumption.
Recognition of ESG criteria
In line with the growing importance of environmental, social and corporate governance (ESG) factors in the market, it is important to remember that the technology and telecommunications company was recently highlighted by the V.E’s Best Emerging Market Performers Ranking, linked to Moody’s ESG Solutions. In its latest version, it highlighted Entel as the only telecommunications company in Chile and one of the seven companies in the country that ranked among the 100 companies with the best performance and whose social responsibility approaches are the most advanced. This, in a reference universe of 855 companies from 31 different countries.
The company has also been highlighted for five consecutive years in the Dow Jones Sustainability Index, in its DJSI Chile and DJSI MILA Pacific Alliance categories. In fact, since 2016 it is the only Chilean telecommunications company in this index.