The Republic of Chile's Ministry of Finance has published an updated Sustainability-Linked Bond Framework that introduces a biodiversity key performance indicator for the first time. The framework, published on 28 July 2025, sets a target of bringing at least 30% of land ecosystems under official protection by 2030, with at least 10% of total land area simultaneously required to meet four criteria of effective management.
Chile was the first country in the Americas to issue sovereign green bonds, having done so in 2019, and became the world's first sovereign issuer of a sustainability-linked bond in 2022.
TARGETS AND COUPON STEP-DOWN
The 30% target is aligned with the Kunming-Montreal Global Biodiversity Framework, which was agreed at the COP15 biodiversity summit in December 2022 and set a global goal of protecting 30% of land and ocean areas by 2030. The updated framework introduces a coupon step-down if both biodiversity targets are met jointly.
The effective management requirement specifies that at least 10% of land must simultaneously satisfy four management criteria rather than simply carrying a formal protection designation. Both thresholds must be met jointly for Chile to earn the coupon step-down.
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