Linklaters has advised the Republic of Chile on the global offering of its Unidades de Fomento (UF)-denominated (inflation indexed unit) 3.4% Bonds due October 1, 2039, totaling approximately US$926.9 million (UF24 million), through a book-building process, with simultaneous offerings in local and international markets.
The notes were issued pursuant to the Republic of Chile’s updated Sustainability-Linked Bond Framework, which the Republic of Chile adopted in June 2023. In connection with the notes, the framework sets out goals with respect to two key performance indicators: (i) absolute greenhouse gas emissions, and (ii) percentage of women on the boards of directors at companies that are under the scope of the Financial Market Commission. The sustainability performance target for the first key performance indicator comprises two events: (i) achieving a maximum annual greenhouse gas emissions of 95 metric tons of carbon dioxide equivalent (MtCO2e) by December 31, 2030, and (ii) achieving a maximum greenhouse gas budget of 1,100 MtCO2e between January 1, 2020 and December 31, 2030. The sustainability performance target for the other key performance indicator comprises the following event: achieving at least 40.0% of women on the boards of directors at companies that are under the scope of the Financial Market Commission by December 30, 2031.
Under the terms of the notes, which are governed by Chilean law, from and including April 1, 2034, the interest rate payable on the notes will be increased unless the Minister of Finance informs that each of the sustainability performance targets has been satisfied via an ordinary official letter to the General Treasury of Chile and to the Depósito Central de Valores S.A. no later than March 15, 2034
The Republic of Chile intends to use the net proceeds for general purposes of the government.
The Linklaters team was led by partner Conrado Tenaglia and counsel Emilio Minvielle, alongside partner Gabriel Grossman (Tax), associates Monica Perez Banuet and Matthew Russo (Tax), and foreign attorney Santiago Errazuriz.
