Shearman & Sterling represented BNP Paribas Securities Corp., Goldman Sachs & Co. LLC and Scotia Capital (USA) Inc. in the Republic of Uruguay’s $700 million SEC-registered offering of its 5.750% USD Bonds due 2034. The bonds will be a further issuance of and be fully fungible with Uruguay’s outstanding 5.750% USD Bonds due 2034 issued in an aggregate principal amount of US$1,499,975,998 on October 28, 2022.

Sustainability-linked bonds are designed to motivate issuers to meet ambitious sustainability targets. The targets contemplated by Uruguay’s bonds include achieving a reduction in aggregate greenhouse gas emissions intensity, and maintaining or increasing the native forest area covering Uruguay’s territory. In 2022, Uruguay innovated by becoming the first sovereign issuer to include a coupon step-down if it overperforms on the targets by a certain threshold.

The offering priced on November 6, 2023, and is expected to close on November 9, 2023.

The Team