Chile’s Ps.1.75 Trillion Debt Offering

Cleary Gottlieb represented BofA Securities, Inc. (BofA), Citigroup Global Markets Inc. (Citi), Itau BBA USA Securities, Inc. (Itau), and J.P. Morgan Securities LLC (JPM), as initial purchasers, in the global offering by the Republic of Chile (Chile) of its Chilean-law governed Ps.1.75 trillion 6.0% bonds due 2033, 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.997 billion of the bonds. BofA, Citi, Itau, and JPM acted as initial purchasers for the bonds sold to investors outside of Chile. The global offering launched on May 15, 2023, priced on May 16, 2023, and is scheduled to close on May 18, 2023.

Chile intends 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.