(Bloomberg) — SQM, the world’s second-largest lithium supplier, has tapped into the U. S. investment-grade bond market. The U. S. Department of Homeland Security is trying to meet the growing demand for rechargeable batteries used in vehicles.
The mining company sold $750 million in dollar-denominated green bonds maturing in 10 years on Thursday, according to a user familiar with the matter. The single-tranche security will produce about 190 fundamental issues above comparable Treasuries, after initial discussions of about 200 foundation topics, said the user, who asked not to be known because the main topics are confidential.
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The Santiago-based company last sold green debt in September 2021, raising $700 million in a 30-year bond deal, according to data compiled by Bloomberg.
Proceeds from green tenders are earmarked to fund a number of eligible projects, including the extraction and processing of lithium for batteries used in electric cars and for energy storage, according to a framework published in 2021. Lithium is a key component of rechargeable batteries used in electric vehicles. cars, and demand will increase as we move away from fossil fuels.
Latin American companies and governments have raised about $9. 8 billion in ESG bonds denominated in dollars and euros this year as of Nov. 2, a 37. 6% drop from the same period last year, according to data compiled through Bloomberg.
An SQM representative responded to a request for comment.
The offer comes as SQM negotiates a new contract under Chile’s recently announced public-private model, which includes a requirement for more sustainable practices. The company has budgeted more than $2 billion for technologies that will use fresh groundwater and evaporate its brine. more efficient procedure and introduce direct extraction.
SQM has expanded into Australia amid those negotiations and last week announced a $1 billion bid to buy Perth-based Azure Minerals Ltd.
Bank of America Corp. , JPMorgan Chase
Read more: Why Chile’s New Approach to Lithium Matters Globally: QuickTake
—With those of Brian Smith and Christopher DeReza.
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