29 May, 2019 Chile

Chile raises US$1.9 billion through peso-denominated issuance

Banking, Finance and Capital Markets

Cleary Gottlieb Steen & Hamilton LLP in Buenos Aires, New York and London and Morales & Besa in Santiago have helped the Republic of Chile issue Chilean peso-denominated bonds for 1.3 trillion pesos (US$1.9 billion).

The joint lead managers hired Shearman & Sterling LLP in New York. The banks are also thought to have relied on Philippi Prietocarrizosa Ferrero DU & Uría (Chile), but this could not be confirmed prior to publication. The deal closed on 17 May.

Chile offered most of the bonds to local investors, but also sold bonds worth 461 billion pesos (US$661 million) to international buyers.

The sovereign retained Cleary Gottlieb and Morales & Besa to launch a tender offer to repurchase previously issued bonds for some 293 billion pesos (US$422 million). Those bonds were governed under both New York and Chilean law. It is the first time Chile has made a tender offer where it has offered non-Chilean investors the opportunity to sell back bonds governed by Chilean law.

Shearman & Sterling and PPU worked on that deal too. It also closed on 17 May. 

The same four firms have worked on Chile’s sovereign bond offerings before. These happened twice in 2018, when Chile raised US$1.6 billion in July and US$3 billion in January.

 

Counsel to the Republic of Chile

Cleary Gottlieb Steen & Hamilton LLP

Partner Andrés de la Cruz and international lawyers Juan Ignacio, and Evan Baran in Buenos Aires; partner Erika Nijenhuis, senior attorney David Stewart Fisher, and associate Alexander Cadmus in New York; and associates James Healy and Mohamed Taha in London

Morales & Besa

Partner Guillermo Morales and associates Jaime Rosso and Josefa Rodríguez in Santiago

 

Counsel to Itaú BBA USA, Santander and Scotia Capital

Shearman & Sterling LLP

Partners Stuart Fleischmann and Grissel Mercado, and associates Joanna Enns and Ignacio Saldana in New York

Philippi Prietocarrizosa Ferrero DU & Uría (Chile)

Partners Marcelo Armas and Marcela Silva, and associates Francisca Rebolledo and Santiago Mesías in Santiago 

 

Source: Latin Lawyer

Link to publication