Morales & Besa advises the Republic of Chile in issuing sovereign bonds of US$2,650 million

January 22, 2016

Morales & Besa advised the Ministry of Finance of Chile on the issuing and placement of international bonds of the Republic of Chile for about US $ 2,650 million, corresponding to a bond denominated in dollars of the United States for approximately US $ 1,349 million, maturing in 2026 and with a coupon of 3.125%, and another denominated in EUR, amounting to EUR 1,200 million maturing in 2026 and with a coupon of 1.750%. Also, with the proceeds of the placement in dollars, a repurchase of bonds previously issued by the Republic was made. This was a very successful operation, given the recent turbulence in international markets.

The underwriters were Citigroup, HSBC, Merrill Lynch and Santander Investment. In-house counsel Álvaro Benavides advised the Ministry of Finance.

Cleary, Gottlieb, Steen & Hamilton was the international legal adviser to the Ministry of Finance (Partner Andrés de La Cruz led the team). Shearman & Sterling was international counsel to the underwiters (Led by partner Stuart Fleischmann). Philippi Prieto Carrizosa & Uría acted as Chilean legal adviser to the underwriters, led by partner Marcelo Armas.

In the transaction the M&B team was led by Pedro Garcia, together with associates Maria Jose Rojas and Javiera Contente.