Republic of Chile’s €1.963 Billion Green Bonds and Tender Offer

Shearman & Sterling represented Banco Santander – London Branch, BNP Paribas and Société Générale in the deal. Cleary Gottlieb represented the Republic of Chile.

The Republic of Chile completed an offering of €1.27 billion aggregate principal amount of its 1.250 percent notes due 2040 and an additional €693.7 million aggregate principal amount of its existing 0.830 percent notes due 2031. The 2031 notes constitute a further issuance of, and are consolidated, form a single series, and are fully fungible with Chile’s outstanding 0.830% Notes due 2031 issued in an aggregate principal amount of €861,000,000 on July 2, 2019. Banco Santander – London Branch, BNP Paribas and Société Générale acted as underwriters for the offering.

Concurrently, the Republic purchased for cash certain of its outstanding 1.625 percent notes due 2025, 1.750 percent notes due 2026, 1.440 percent notes due 2029 and 1.875 percent notes due 2030 for a total aggregate principal amount of €469 million through Banco Santander – London Branch, BNP Paribas and Société Générale, as dealer managers.

The Republic intends to invest an amount equal to the proceeds from the sale of the notes into projects that may qualify as “eligible green expenditures” under its Green Bond Framework, making this the fourth green debt offering by Chile.

The team included partners Stuart Fleischmann (Picture) and Grissel Mercado and associates Maria Marulanda Larsen and Anna Shepard (all New York-Capital Markets). The team also included visiting attorney Miguel Torres Caro.

The Cleary team included Buenos Aires based partner Andrés de la Cruz, New York based associate Ignacio Lagos, and Buenos Aires based international lawyer Juan Ignacio Grimau. Senior attorney David Fisher and associates Lorenz Haselberger?, Alexander Cadmus, and Hannah Littman provided New York tax advice.

Involved fees earner: Alexander Cadmus – Cleary Gottlieb Steen & Hamilton; Andrés De la Cruz – Cleary Gottlieb Steen & Hamilton; Juan Ignacio Grimau – Cleary Gottlieb Steen & Hamilton; Lorenz Haselberger – Cleary Gottlieb Steen & Hamilton; Ignacio Lagos – Cleary Gottlieb Steen & Hamilton; Hannah Littman – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Stuart Fleischmann – Shearman & Sterling; Maria Marulanda Larsen – Shearman & Sterling; Grissel Mercado – Shearman & Sterling; Anna Shepard – Shearman & Sterling;

Law Firms: Cleary Gottlieb Steen & Hamilton; Shearman & Sterling;

Clients: Banco Santander – London Branch; BNP Paribas; Republic of Chile; Société Générale;

Author: Ambrogio Visconti