Green and Social Bond Our experience as an issuer

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Presentation transcript:

Green and Social Bond Our experience as an issuer www.aguasandinas.cl www.aguasandinasinversionistas.cl

Indefinite Concessions: 6 Santiago Aguas Andinas Región de Los Lagos Región de Los Ríos Essal AGUAS ANDINAS 30 Year Concessions: 8 2,259,245 clients Representing 43% of the industry’s clients Chile’s largest water utility company 100% coverage in potable water and sewage treatment 50% of the industry’s potable water (m3) billing Note: In the cases of Australia, New Zealand and Switzerland, the cities considered are Sydney, Auckland and Zurich respectively. Source: Global Water Intelligence Water Tariff Survey 2017, Suez , SISS 2016 Management Report

SANTIAGO DESERVES THE BEST STRATEGY THE BEST FOR SANTIAGO Business Model Resilience Digitalization Circular Economy Social Legitimacy Innovation and People SANTIAGO DESERVES THE BEST Water and Quality of Life

ALIGNED WITH THE SUSTAINABLE DEVELOPMENT GOALS Mitigate the effects of climate change, specifically those related to turbidity and drought. Transform its sewage treatment plants into biofactories Reuse 100% of waste and transform them into energy or other benefic uses. Aguas Andinas and its subsidiaries are contributing to the country, through 15 of the 17 Sustainable Development Goals. The SDGs were suscribed to by the Chilean Government as a guide in sustainable development matters.

+30 17th £2.6 BILLION AA+ 7° 100% 27 £1.1 BILLION OUR EXPERIENCE IN THE LOCAL FINANCIAL MARKET +30 Shareholding Countries 17th Most traded share in the Santiago Stock Exchange £2.6 BILLION Stock Market Value AA+ Credit Rating Local Debt 7° Largest Fixed Income Issuer in Chile Controlling Shareholder 100% Local debt Local Currency 27 Issuances in the Local Market since 2001 £1.1 BILLION Outstanding Debt Note: Exchange rate GBP/CLP at the end of June 2018, 847.10

WHY TO ISSUE A GREEN AND SOCIAL BOND Sustainability is at the core of our business Investor driven governance was in place Potential to access lower financing costs The additional costs were not material

THE BOND THE GREEN AND SOCIAL BOND FRAMEWORK It was based on the International Capital Markets Association (ICMA)’s Green Bond and Social Bond Principles and it is aligned with its four core components: use of funds, selection and evaluation of projects, management of funds and reporting. The bond has a third party opinion and annual external audit regarding the use of funds ISSUANCE CHARACTERISTICS THE BOND Amount: UF 1.5 million (£48.1 millions) Reajustability: Inflation-linked Term: 7 years Grace: 3 years RESULTS Buyers: mainly mutual funds, Chilean pension funds, and insurance companies. Placement time: 8 seconds Total Demand: 3.6 times Spread: 53 bps, Lowest spread of any corporate bond issued in Chile in the past 4 years