Carey counsels Grupo Patio on RE developer’s first bond issue

Law firm Carey advised Patio Comercial, a subsidiary of Chilean real estate developer Grupo Patio, on its inaugural placement of bonds in the local market for approximately $82 million, for a 25-year term at a rate of 2.49 per cent.

The bonds were offered and sold on the Santiago Stock Exchange (BPATI-C) for the maximum amount permitted by the indenture for the first placement, with a bullet payment at final maturity, bi-annual interest payment and a placement exchange rate of 2.49 per cent.

The bonds achieved a level of demand and a rate not previously seen in the Chilean market for loans of this type, the law firm said, especially considering that the capital is repaid at maturity of a 25-year period. 



“This confirms the market trend that we have seen during the last year in connection with the enormous interest of the market, and especially from institutional investors, for debt or equity securities related to companies in the real estate development and rent industry, with stable returns in the long term,” it said.



Carey’s team was led by partner Salvador Valdés and featured associates Arturo Poblete and María Gabriela García.



Grupo Patio was also counselled by MB Abogados with a team comprising partner Carolina Menichetti, and senior lawyer Sybil O’Reilly.