Chile’s Ps. 1.1 Trillion Debt Offering

Cleary Gottlieb represented Itau BBA USA Securities Inc. (Itau) and Scotia Capital (USA) Inc. (Scotia), as initial purchasers, in the global offering by the Republic of Chile (Chile) of its Chilean-law governed Ps. 1.1 trillion 5.8% bonds due 2024, which was comprised of a public offering in Chile, and a concurrent offer and sale of bonds to eligible investors outside of Chile.

Chile offered investors outside of Chile Ps. 91 billion of the bonds. Itau and Scotia also acted as initial purchasers for the bonds sold to investors outside of Chile. The global offering launched on December 6, 2021, priced on December 9, 2021, and closed on December 13, 2021.

Chile declared its intention to invest an amount equal to the net proceeds from the sale of the bonds to fund budgetary programs that qualify as “eligible social expenditures” under its sustainable bond framework, which includes expenditures in one or more of the following categories: support for the elderly or people with special needs in vulnerable situation, support for low-income families, support for human rights victims, support for the community through job creation, access to affordable housing, access to education, food security, access to essential health services, and social programs designed to prevent and/or alleviate unemployment derived from socioeconomic crises.