The project’s commitment to society, “Building Together,” will offer legal services, tax advice and training to social organizations free of charge.
Chile’s Corporación Bien Público issues social impact bond
Corporación Bien Público has issued a second Social Impact Contract (CIS) in Chile, involving the participation of public and private entities, a bond that will raise funds aimed at implementing an education program.
The project seeks to solve a complex social problem such as the low levels of reading comprehension and writing of students in certain schools in Chile and to improve their reading and writing skills.
The project involved adapting the structure of the Social Impact Bond to the Chilean reality, which does not contemplate legal mechanisms encouraging the implementation of this kind of mechanisms, according to law firm Carey, which advised on the issuance.
This involved the analysis and design of a new legal structure that would allow the functionality of the project at different levels, from its financing, coordination, evaluation and finally, direct implementation. The success of the project required the preparation of complex contracts with interconnected structures, with a practical approach and allowing attractive financial results.
It also involved the challenge of coordinating and negotiating with entities of different nature, including in this case for the first time a listed company and a municipality (Municipality of Puente Alto), to comply in a single structure with all the interests and legal conditions of the entities involved, such as the Certification of Educational Technical Assistance required by the Ministry of Education.
Corporación Bien Público participated in the project as coordinator and Falabella Retail S.A., Municipality of Puente Alto, Fundación de Beneficencia Pública Olivo, Corporación Ermita de San Antonio, Fundación Angelini and Fundación San Carlos de Maipo acted as payees.
The "Fondo de Inversión con Impacto en Educación" managed by Larraín Vial Asset Management participated as an investor in the project; Colegium Servicios Profesionales Limitada, as an independent evaluator of the results generated; and Fundación Social Astoreca, Fundación Educacional Barnechea, Corporación de la Educación Aptus Chile and Fundación Educacional Crecer con Todos participated as service providers of the program.
Carey’s team advising Corporación Bien Público on the structuring and implementation of the project was led by partner Francisco Guzmán, with associates Carolina Miller, Sofía Beckdorf, as well as partner Manuel José Garcés and associates Benjamín Echeverría, Diego Hormazábal and Elias Mohor.
Law firm Barros & Errázuris acted as counsel to Larraín Vial, with a team led by associates Francisco Vial and Emilia Bórquez.
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