Empresas CMPC’s $100 Million Sustainability-Linked Credit Facility

Cleary Gottlieb and Carey represented Empresas CMPC in the transaction. Philippi Prietocarrizosa Ferrero DU & Uría advised the lenders

Empresas CMPC, one of the world’s largest pulp and paper producers, acted as guarantor, and its subsidiary Inversiones CMPC, as borrower, in connection with a U.S.$100,000,000 sustainability-linked revolving credit facility signed on August 4, 2020. The facility is one of the first sustainability-linked credit facilities established in Chile.

BNP Paribas acted as administrative agent and sustainability structuring agent and the bank syndicate consisted of BNP Paribas Securities Corp., Export Development Canada, MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation.

Empresas CMPC has decided to index the financial costs of the facility to environmental and social performance indicators, in line with the company’s sustainability strategy and ESG goals. The four non-financial criteria introduced into the calculation of the facility’s financing costs relate to (i) greenhouse gas emissions, (ii) industrial water use, (iii) industrial waste to landfill, and (iv) area for protection, conservation and restoration.

The Cleary Gottlieb team advising Empresas CMPC included partner Adam Brenneman (Picture), associates Patricia de Lucio and Shelbi Vaughn, and law clerk Steven Diaz. Senior attorney David Fisher and associate JinSol Lee provided U.S. tax advice. Senior attorney James Corsiglia provided sanctions advice. All lawyers are based in New York.

Carey advised Empresas CMPC with a team including Diego Peralta (Picture), Nadia Jara, Kriss Andía and Fernanda Valdés.

Philippi Prietocarrizosa Ferrero DU & Uría advised the lenders with Marcelo Armas, Daniel Parodi and Macarena Soto

Involved fees earner: Kriss Andía – Carey; Nadia Jara – Carey; Diego Peralta – Carey; Fernanda Valdés – Carey; Adam Brenneman – Cleary Gottlieb Steen & Hamilton; James Corsiglia – Cleary Gottlieb Steen & Hamilton; Patricia de Lucio – Cleary Gottlieb Steen & Hamilton; JinSol Lee – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Shelbi Vaughn – Cleary Gottlieb Steen & Hamilton; Marcelo Armas Mac Donald – Philippi Prietocarrizosa Ferrero DU & Uría; Daniel Parodi – Philippi Prietocarrizosa Ferrero DU & Uría; Macarena Soto – Philippi Prietocarrizosa Ferrero DU & Uría;

Law Firms: Carey; Cleary Gottlieb Steen & Hamilton; Philippi Prietocarrizosa Ferrero DU & Uría;

Clients: BNP Paribas; Empresas CMPC S.A.; Export Development Canada; MUFG Bank, Ltd.; Sumitomo Mitsui Banking Corporation;

Author: Ambrogio Visconti