Parque Arauco marks a milestone with the successful issuance of the first green bond in the real estate sector

Parque Arauco, a real estate investment company with more than 1.2 million leasable square meters in Chile, Peru, and Colombia, has completed the issuance of a green bond in the Peruvian capital market for an amount in local currency equivalent to 70 million dollars, marking a milestone as the first transaction of its kind in the South American retail real estate sector.

The placement, with a 15-year term and an inflation-adjusted interest rate of 4.25% per year, was oversubscribed by 2.2 times the maximum amount offered. The transaction is aligned with Parque Arauco’s new Sustainable Financing Framework, which includes seven categories of green projects: green buildings, renewable energy, energy efficiency, clean transportation, sustainable water and wastewater management, pollution prevention and control, and climate change adaptation.

The funds will primarily be used to finance the construction of Parque La Molina, a shopping center opened in Lima in December 2024, which already has the prestigious LEED Gold certification from the U.S. Green Building Council. This asset features energy efficiency, bioclimatic systems, responsible water management, and green areas that promote urban biodiversity.