Carey represents Codelco in $2bn bond issue

Carey has represented Codelco in a US$2 billion bond issue and placement under regulation 144A/Reg S, divided into a US$1.3 billion tranche, at an interest rate of 5.95% per annum and maturing in 2034; and a US$700 million tranche, at an interest rate of 6.3% per annum and maturing in 2053.

This transaction was priced on September 5 and completed on September 8 and involved the Chilean and US jurisdictions. Cleary Gottlieb Steen & Hamilton acted as US counsel to Codelco, while Garrigues and Linklaters advised the underwriters in Chile and the US, respectively.

In addition, the notes are expected to be listed on the Luxembourg Stock Exchange and traded on the Euro MTF market of the exchange.

BNP Paribas Securities Corp, Citigroup Global Markets, J.P. Morgan Securities, Santander US Capital Markets and Scotia Capital (USA) acted as initial purchasers.

This bond issue in the international market is part of Codelco’s need to finance its important project portfolio, which this year contemplates an investment of US$4.1 billion, the highest figure in the last decade, as the state-owned mining company told the Chilean regulator.

Nicola Possekel acted as in-house counsel to Codelco.

Garrigues’ team was represented by partner Pedro García.

Cleary’s corporate team included partners Duane McLaughlin and Adam Brenneman, associate Amanda Mitchell, and international lawyers Pedro Arango Montes and Lucía De Miceu. Counsel Matthew Brigham and associates Jesse Hong and Kathy Zhang advised on U.S. tax matters. All lawyers are based in New York.

Carey’s team was led by partners Diego Peralta (pictured left), Fernando Noriega (pictured right) and Manuel José Garcés (pictured centre), with support from counsel Francisco Corona, and associates Diego Lasagna and Francisco Jiménez.