Republic of Chile’s Debt Offering

Cleary Gottlieb and Morales & Besa represented the Republic of Chile in the transaction, while Simpson Thacher and Garrigues represented the initial purchasers.

Republic of Chile executed its global concurrent offering of Chilean-law governed Ps. 1,040,000,000,000 2.30% Bonds due 2028 (the “2028 Bonds”) and Ps. 560,000,000,000 2.80% Bonds due 2033 (the “2033 Bonds” and together with the 2028 Bonds “Bonds”), which was comprised of a public offering in Chile, and an offer and sale of bonds to eligible investors outside of Chile. The Republic offered to investors outside of Chile Ps. 253,940,000,000 of the 2028 Bonds and Ps. 396,935,000,000 of the 2033 Bonds.

Citigroup Global Markets Inc., Santander Investment Securities Inc. and Scotia Capital (USA) Inc. acted as initial purchasers for the portion of the Bonds sold to investors outside of Chile. The global offering launched on November 17, 2020, priced on November 19, 2020 and closed on November 23, 2020.

Chile declared its intention to invest an amount equal to the net proceeds from the sale of the Bonds to fund budgetary programs that qualify as eligible social expenditures under the Sustainable Bond Framework and that are included in Chile’s budget for the fiscal year 2020, including to fund the government’s response to COVID-19. The issuance of the Bonds was Chile’s first social issuance under the Sustainable Bond Framework.

The Cleary team advising Chile included partner Andrés de la Cruz (Picture), associate Ignacio Lagos and international lawyers Lara Gómez Tomei and Juan Ignacio Leguízamo. Partner Jason Factor, senior attorney David Stewart Fisher and associate Alexander Cadmus provided NY tax advice. Associate Aditi Venkat and trainee solicitor Ern Huei Lim provided advice on UK-EU selling restrictions. Andrés de la Cruz, Lara Gómez Tomei and Juan Ignacio Leguízamo are based in Buenos Aires, Jason Factor, David Stewart Fisher, Ignacio Lagos and Alexander Cadmus are based in New York and Aditi Venkat and Ern Huei Lim are based in London.

In Chile, Morales & Besa advised the Republic of Chile with a team including Guillermo Morales, Santiago Martinez, Mariana Schnettler, Bárbara Echaiz and Matias López.

The Simpson Thacher team for the transaction included Jaime Mercado, Kirsten L. Davis and Francisco Ducci (Capital Markets); and Jonathan Cantor and Suzy Yaster (Tax).

In Chile, Garrigues advised the initial purchasers with Pedro García Morales, Daniel Hernández Zapata, María Fernanda Jara Verdugo, Macarena Fuentes and Juan Ignacio Lagos Soza.

Involved fees earner: Alexander Cadmus – Cleary Gottlieb Steen & Hamilton; Andrés De la Cruz – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Lara Gómez Tomei – Cleary Gottlieb Steen & Hamilton; Ignacio Lagos – Cleary Gottlieb Steen & Hamilton; Juan Ignacio Leguízamo – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Aditi Venkat – Cleary Gottlieb Steen & Hamilton; Pedro García Morales – Garrigues; Daniel Hernández Zapata – Garrigues; María Fernanda Jara Verdugo – Garrigues; Barbara Echaiz – Morales & Besa; Matías López – Morales & Besa; Santiago Martínez – Morales & Besa; Guillermo Morales – Morales & Besa; Mariana Schnettler R. – Morales & Besa; Jonathan Cantor – Simpson Thacher & Bartlett; Kirsten Davis – Simpson Thacher & Bartlett; Francisco Ducci – Simpson Thacher & Bartlett; Jaime Mercado – Simpson Thacher & Bartlett; Susan Yaster – Simpson Thacher & Bartlett;

Law Firms: Cleary Gottlieb Steen & Hamilton; Garrigues; Morales & Besa; Simpson Thacher & Bartlett;

Clients: Citigroup Global Markets Ltd; Republic of Chile; Santander Investment Securities Inc.; Scotia Capital Inc.;

Author: Ambrogio Visconti.