A&O Shearman advises the Republic of Chile on its bond offering and tender offer

Published Date
Jun 11, 2024
A&O Shearman represented the Republic of Chile in connection with its offering of Ps. 441,475,000,000 6.0% Bonds due April 1, 2033 and Ps. 345,185,000,000 6.2% Bonds due October 1, 2040, and a concurrent cash tender offer for its Chilean peso-denominated 2.500% Bonds due March 1, 2025, 4.500% Bonds due March 1, 2026, 2.300% Bonds due October 1, 2028, and 2.800% Bonds due October 1, 2033.

The offering of the bonds and cash tender offer were made concurrently with a local cash tender and exchange offers to the public in Chile. 

Chile used a portion of the proceeds of the sale of the bonds to pay the purchase price of the existing bonds accepted in the tender offers. Additionally, Chile intends to invest an amount equal to the net proceeds from the bond offering to fund budgetary programs that qualify as “eligible social expenditures” under its Sustainable Bond Framework.

The A&O Shearman team was led by Capital Markets partner Alejandro A. Gordano and included Capital Markets visiting attorneys Marcello Pompilio and Moises Gonzalez Arroyo, Tax partner Lorenz Haselberger and Tax associate Daniel Kachmar.