Morales & Besa advised the Republic of Chile in its first green sovereign bond issuance in USD

June 25, 2019

Morales & Besa acted as special Chilean counsel to the Republic of Chile, represented by the Ministry of Finance, in connection with a global offering of a sovereign bond due 2050 with a principal amount of US$1,418,357,000 and a 3.500% coupon. BNP Paribas, Citigroup and HSBC acted as underwriters for the USD sovereign bond issuance.

The bond offering was made by means of a Prospectus Supplement and an accompanying Base Prospectus under Chile’s registration statements filed with the United States Securities and Exchange Commission.

Regarding the use of proceeds, Chile applied a portion thereof to liability management pursuant to a concurrent tender offer by virtue for the repurchase of old bonds due 2020, 2021, 2022, 2025, 2026, 2042 and 2047 for a total consideration of USD $ 892,326,388.42. The balance of the proceeds was utilised to fund general governmental purposes.

The Morales & Besa’s team was led by partner Guillermo Morales, along with senior associate Jaime Rosso (tax),  associates Francisca Bannura (environment) and Mariana Schnettler (capital markets), and foreign associate, Beatrice Russo (capital markets).