26 January, 2016 Chile

Chile completes historic 1 trillion peso debt tap

Banking, Finance and Capital Markets

Cleary Gottlieb Steen & Hamilton LLP in Buenos Aires and New York and Chilean firm Morales & Besa have helped the Republic of Chile issue sovereign bonds worth 1 trillion pesos (US$1.5 billion).

BNP Paribas, Citigroup, Goldman Sachs and JP Morgan were initial purchasers and hired Shearman & Sterling LLP’s New York, Toronto and Washington, DC offices and Philippi Prietocarrizosa Ferrero DU & Uría (Chile).

For the first time in its history, Chile has offered peso-denominated instruments to both the international and domestic capital markets in a bid to attract investment.

Global investors will be able to access the bonds through Euroclear, one of the world’s largest debt clearinghouses, from 1 February. Euroclear allows public and private sector companies to reduce their borrowing costs by exposing their debt to international investors.

Mexico’s state-run oil and gas developer Pemex made a similar issuance in 2015, selling domestic bonds that could be settled either through Euroclear or locally.

The deal closed on 20 January.

Counsel to Republic of Chile

Cleary Gottlieb Steen & Hamilton LLP

Partner Andrés de la Cruz, international lawyers Veronica Franco, Santiago Achurra and Francisco Cravero and associate Gianluca Galeoti in Buenos Aires and partner Erika Nijenhuis and associate David Stuckey in New York

Morales & Besa
Partners Guillermo Morales and Matías Langevin, and associates Jaime Rosso and María José Rojas

Counsel to initial purchasers

Shearman & Sterling LLP

Partner Stuart Fleischmann, counsel Grissel Mercado and associate Eric Grosshandler in New York and associates Jennifer Lau and Joanna Enns in Toronto and Jeffrey Tate in Washington, DC

Philippi Prietocarrizosa Ferrero DU & Uría (Chile)
Partner Marcelos Armas and associates Marcela Silva and Daniel Parodi

This article was amended on 26/01/17 to reflect changes to both Cleary Gottlieb Steen & Hamilton LLP’s and Shearman & Sterling LLP’s counsel lists.

Source: Latin Lawyer

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