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News Jun 25, 2019

Latin America’s First Sovereign Green Bond and Concurrent Tender Offer

Shearman & Sterling represented BNP Paribas Securities Corp., Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. as underwriters in connection with an SEC-registered offering by the Republic of Chile of $1.42 billion aggregate principal amount of the Republic’s 3.500 percent notes due 2050.

Concurrently, the Republic purchased for cash certain of its outstanding 3.875 percent notes due 2020, 3.25 percent notes due 2021, 2.250 percent notes due 2022, 3.125 percent notes due 2025, 3.125 percent notes due 2026, 3.625 percent notes due 2042 and 3.860 percent notes due 2047 through BNP Paribas Securities Corp., Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. as dealer managers, which Shearman & Sterling also represented.

The Republic intends to invest an amount equal to the proceeds from the sale of the notes into projects that may qualify as “eligible green expenditures” under its Green Bond Framework, making this the first sovereign green bond in Latin America.

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