Chile’s Codelco makes $2bn bond issuance

The issuance consisted of a new issuance of $1.5 billion, with an interest rate of 6.44% and maturity in 2036, and the reopening of its existing notes for $500 million, due in 2053, with an interest rate of 6.3%.

The transaction included the participation of BofA Securities, Citigroup Global Markets, J.P. Morgan Securities and Santander US Capital Markets, as initial purchasers.

The issuance responds to Codelco’s need to finance its long-term investment plan, and the sale has been qualified as successful, since more than 357 orders, from 310 investors, were received, and was oversubscription 3.75 times, according to law firm Carey, which advised Codelco on the issuance.

Carey’s team advising Codelco was led by partners Diego Peralta and Fernando Noriega, with associate Diego Lasagna.

Shearman & Sterling acted as the underwriters' New York legal counsel, with a team led by partner Alejandro Gordano, with associates Gonzalo Robles and Eduardo Mendoza.

Garrigues acted as the underwriters' local legal counsel, with a team led by partner Pedro García, and Cleary Gottlieb Steen & Hamilton acted as Codelco’s New York legal counsel, with a team led by partner Adam Brenneman, with associate Sofía Falzoni and international lawyer Lucía de Miceu.

Codelco’s in-house legal counsel advising on the issuance was led by legal director María Gabriela Campos, with counsel Nicola Possekel.