Parque Arauco, a leading Latin American real estate investment company with over four decades of experience, continues to shape the region’s commercial landscape through innovation, sustainable development, and strategic partnerships with financial institutions. With operations in Chile, Peru, and Colombia, the company plays a pivotal role in urban and economic development across diverse communities within the Andean region.
As part of its commitment to sustainable investment and ESG-aligned growth, Parque Arauco has launched a comprehensive Sustainable Financing Framework. This financial framework encompasses seven green project categories—including green buildings, renewable energy, energy efficiency, clean transportation, sustainable water and wastewater management, pollution prevention, and climate change adaptation—and three social categories focused on essential services, SME support, and sustainable infrastructure.
Under this framework, Arauco Holding Perú successfully issued its first retail real estate green bond for S/150 million, marking a milestone for both the company and the Peruvian market.1 This issuance represents the first green bond in the retail real estate sector in South America, as well as the first green bond from a real estate issuer in Peru.2 Scotiabank is proud to have acted as sole bookrunner, ratings advisor, and sustainable finance advisor in this landmark dual-tranche issuance totaling S/250 million. This transaction featured the mentioned green bond tranche denominated in inflation-linked local currency, specifically structured to match eligible green uses, alongside a nominal PEN-denominated tranche.
Francisco Moyano Pérez, Chief Financial and Administration Officer at Parque Arauco, emphasized the strategic importance of this issuance: “Our first green bond issuance is much more than a financial milestone—it is the realization of our leadership and sustainability strategy. It shows that the market values our purpose and supports our ambition to generate profitable and sustainable growth. We are proud to be paving the way in South America.”
Leveraging its deep market insight and structuring expertise for long-term transactions in the Peruvian market, Scotiabank provided strategic guidance that enabled the issuer to maximize investor demand and minimize overall financing costs at 26 basis points over the sovereign benchmark, while achieving a milestone transaction in Peru’s sustainable finance landscape.
José Jorge Rivero, Senior Vice President, Corporate Banking, International Banking GBM at Scotiabank added: “This issuance marks a step forward in sustainable financing for the real estate sector in Peru and South America, consolidating Scotiabank Peru as a benchmark in the capital market for the real estate sector in the country. At Scotiabank, we support our clients with regional impact—like Parque Arauco—through innovative financial solutions backed by our global capabilities, and deep understanding of local markets. This green bond reflects our commitment to support our clients’ sustainability strategies as a driver of business growth and sector evolution.”
Proceeds from the bond will support green building initiatives, including the flagship Parque La Molina shopping center in Lima, which has earned LEED Gold certification from the U.S. Green Building Council. The project exemplifies Parque Arauco’s efforts toward decarbonization and sustainable construction, featuring efficient water and energy use, bioclimatic systems for thermal comfort, and green spaces that enhance biodiversity and reduce environmental impact.
Through initiatives like these, Parque Arauco is not only redefining retail real estate in Latin America but also contributing meaningfully to a more sustainable future.
