Republic of Chile’s US$1.5 Billion Sustainable Bond Offering

Linklaters, Lee and Li and Morales & Besa advised the Republic of Chile, while Cleary Gottlieb and Garrigues represented the underwriters and the structuring agent on the deal.

The Republic of Chile intends to invest the net proceeds of the US$1.5 billion 3.500% notes due 2053 into projects that may qualify as “eligible green expenditures” and “eligible social expenditures” under its Sustainable Bond Framework.

The notes, known as Formosa bonds because they have been listed on the Taipei Exchange, obtained the lowest coupon by a sovereign issuer of a Formosa bond and are the first sustainable bond listed on the Taipei Exchange by a sovereign issuer.

The strong issuance highlights the demand from investors with dedicated environmental, social, and governance (ESG) mandates in the Formosa market and elsewhere.

Crédit Agricole CIB, Taipei Branch and Goldman Sachs (Asia) L.L.C. acted as underwriters, and Merrill Lynch International, as structuring agent for the offering.

The Linklaters team was led by partner Conrado Tenaglia (Picture), alongside counsel Alejandro Gordano, counsel Matthew Brigham (Tax), associate Matthew Russo (Tax) and foreign attorney Monica Perez-Banuet Farell.

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

In Taiwan, Lee and Li advised the Republic of Chile with Abe Sung, Jessica Wang and Meggy Wang.

Cleary Gottlieb represented the underwriters and the structuring agent with a team which included partners Andrés de la Cruz and Juan Giráldez, associate Ignacio Lagos, and international lawyers Juan Ignacio Leguízamo and Lara Gómez Tomei. Partner Jason Factor, senior attorney David Stewart Fisher, and law clerk Zhiyuan Zuo provided New York tax advice.

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

Involved fees earner: Andrés De la Cruz – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Juan Giráldez – 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; Pedro García Morales – Garrigues; Daniel Hernández Zapata – Garrigues; Matthew Brigham – Linklaters; Alejandro Gordano – Linklaters; Matthew Russo – Linklaters; Conrado Tenaglia – Linklaters; Barbara Echaiz – Morales & Besa; Santiago Martínez – Morales & Besa; Guillermo Morales – Morales & Besa; Mariana Schnettler R. – Morales & Besa;

Law Firms: Cleary Gottlieb Steen & Hamilton; Garrigues; Linklaters; Morales & Besa;

Clients: Crédit Agricole Corporate and Investment Bank, Taipei Branch; Goldman Sachs (Asia) L.L.C.; Merrill Lynch International; Republic of Chile;

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Martina Bellini

Author: Martina Bellini