Linklaters advises the Republic of Chile on international offering of Euroclearable peso-denominated social bonds
Linklaters has advised the Republic of Chile on the international offering of its peso-denominated 4.60% notes due 2028, totaling approximately US$2.0 billion (CLP$1.5 trillion), through a book-building process, with simultaneous offerings in local and international markets.
The proceeds from the sale of the notes will finance projects that support households, education, essential health services as well as programs to prevent and/or alleviate the effects derived from COVID-19, as well as other projects the qualify as eligible social expenditures under the Republic of Chile’s Sustainable Bond Framework.
The Linklaters team was led by partner Conrado Tenaglia and counsel Alejandro Gordano, alongside Counsel Matthew Brigham (Tax) and associate Matthew Russo (Tax), foreign attorney Monica Perez-Banuet Farell and summer associate Andreina Lamas.
This is the third offering of peso-denominated notes through Euroclear by the Republic of Chile, after they became Euroclearable in 2017. In July 2021, peso-denominated securities issued by Chilean companies became Euroclearable, as the result in changes in the legal framework and tax treatment of these securities, making them compatible with international standards. Euroclearability of domestic corporate securities is expected to allow foreign investors to access them in a more efficient and standardized way, and give Chilean corporate issuers access to a wider investor base and deeper liquidity pools.
Chile has issued a total of US$18.06 billion in environmental, social, and governance (ESG) bonds and Linklaters has advised the Republic of Chile on a number of these bonds including the Formosa bonds, SEC-registered ESG bonds, and the largest foreign currency social bond from a sovereign in Latin America.
Linklaters continues to be at the forefront of the growth in the green and social bonds market and its experience spans its Latin American, North American, European, and Asian offices and draws on the support of the firm’s market-leading practices.
