Chile’s $1.6 Billion and €1.7 Billion Debt Offerings

Cleary Gottlieb represented BNP PARIBAS, Citi, HSBC, and J.P. Morgan, as underwriters, in the Republic of Chile’s (Chile) SEC-registered offering of $1.6 billion 5.65% U.S. dollar-denominated notes due 2037 and €1.7 billion 3.75% euro-denominated notes due 2032.

The offerings of the USD notes and the euro notes launched and priced on January 7, 2025, and closed on January 13, 2025 and January 14, 2025, respectively. Chile intends to invest an amount equal to the net proceeds from the sale of the euro notes to fund budgetary programs that qualify as “eligible social expenditures” under its sustainable bond framework.

Since January 2023, Cleary has participated in 14 transactions by the Chile, representing the underwriters, initial purchaser, or dealer managers, as applicable, including new money offerings, exchange offers and tender offers denominated in U.S. dollars, euros, Chilean pesos, and Unidades de Fomento (UF). The combined transactions since January 2023 resulted in the issuance of new debt in excess of $20 billion, some of which were bonds with an ESG component (approximately $9.4 billion corresponded to sustainability-linked bonds and $9.5 billion to social bonds).