Chile markets dollar-denominated social notes on heels of euro offer

Chicago, July 22 – The Republic of Chile is marketing a three-part offering of dollar-denominated notes one day after selling €1.75 billion of green notes in two tranches, according to a 424B3 filing with the Securities and Exchange Commission on Thursday.

The republic had said that if market conditions were favorable it would move to issue more notes.

Chile is planning to sell one tranche of new notes and two taps of previous issues.

The country is planning to reopen issues of 3.1% notes due May 7, 2041 and 3.1% notes due Jan. 22, 2061. The tap issues will be fungible with their earlier issued counterparts.

Chile issued $1.7 billion of the 2041 notes on May 7 and $1.5 billion of the 2061 notes on Jan. 22, 2021.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Santander Investment Securities Inc. and Scotia Capital (USA) Inc. are underwriting the offer.

Proceeds from the offer will be used for eligible social expenditures, like the euro issue, under the republic’s sustainable bond framework.

Possible social expenditures may include the following: support for the elderly or people with special needs in vulnerable situations, support for low-income families, support for human rights victims, support for the community through job creation, access to affordable housing, access to education, food security, access to essential health services, and social programs designed to prevent and/or alleviate unemployment derived from socioeconomic crises, including through the potential effect of financing SMEs and micro finances.

Application will be made to the London Stock Exchange for the listing of the notes.

Bank of New York Mellon is the trustee.

Linklaters LLP (New York) and Morales & Besa Ltda. (Chile) provided counsel for Chile.

Cleary Gottlieb Steen & Hamilton LLP (New York) and Garrigues Chile SpA (Chile) provided counsel to the underwriters.

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