Linklaters has advised the Republic of Chile on the global offering of its peso-denominated 5.3% Bonds due November 1, 2037, totaling approximately US$2.2 billion (CLP$1.75 trillion), 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 May 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 Alejandro Gordano, alongside partner Gabriel Grossman (Tax) and associates Matthew Russo (Tax), Mario Lercari, and Monica Perez Banuet.
Linklaters continues to be at the forefront of the growth in the green and social bonds market, with experience spanning the firm’s Latin American, North American, European, and Asian offices.
