WASHINGTON, USA – IDB Invest and responsAbility are supporting Royal América in the issuance of a green bond in Chile and Colombia. The seven-year, $26 million bond issue seeks to modernize the logistics sector by financing electrical machinery in strategic industries such as food, retail, agriculture, and manufacturing, among others.
The issue will be distributed in two tranches: Tranche A of up to $16 million in Chilean pesos, which will be allocated to Royal America Chile and subscribed by IDB Invest as the anchor investor; and Tranche B of up to $10 million for Royal America Colombia, with ResponsAbility as a co-investor.
This initiative will have a positive environmental impact, as the electric motors will help to reduce the ecological footprint of logistics compared to conventional motors, which rely on fossil fuels.
IDB Invest also supported Royal América through technical advisory services in the development of the reference framework for the green bond issuance. The second-party opinion was prepared by Moody’s, confirming the Framework’s alignment with the International Capital Market Association (ICMA) Principles.
This issuance consolidates Royal America’s position as a key player in sustainability and sets a precedent for the regional market. As part of its commitment, the company will implement an Environmental and Social Action Plan (ESAP) and strengthen its corporate governance.