Several firms advise on COFIDE’s first international sustainable bond issue
Garrigues and Clifford Chance have advised Corporación Financiera de Desarrollo (COFIDE), the Peruvian state-owned development bank, on the issuance of US$ 300,000,000 international bonds maturing in 2029 at a rate of 5.950%.
The transaction also included the offer to repurchase the 5.250% Fixed to Floating Rate Subordinated Notes due 2029 under Rule 144-A and Regulation S of the U.S. Securities Act of 1933, as amended.
JP Morgan Securities and Santander US Capital Markets acted as initial purchasers and dealer managers as well as sustainability coordinators, being advised locally by Estudio Echecopar and internationally by Shearman & Sterling.
The issue, closed on 30 April, represents a new milestone for COFIDE in the international capital markets, where it has previously issued $2.4 billion worth of securities, as it is the first international issue of thematic bonds under COFIDE’s recently developed Thematic Bond Framework.
The proceeds of the offering will be used to pay the price in connection with COFIDE’s announced offer to redeem its 5.250% Fixed-Floating Rate Subordinated Bonds maturing in 2029, as well as for general corporate purposes, such as the financing or refinancing, in whole or in part, of one or more new or existing eligible projects in accordance with COFIDE’s Thematic Bond Framework, including projects for social inclusion and financial services for vulnerable groups, access to essential services: affordable housing, education, health services and water and sanitation, and support to SMEs for the use of financial services.
COFIDE is a state-owned development bank created in 1971 by the Peruvian government and a key participant in the country’s economic and social development programmes, with assets of more than USD 3 billion.
Jorge Pineda, Karin Torres and Henrry España acted as in-house counsels to COFIDE.
Garrigues Peru’s team was led by partner Diego Harman (pictured left), together with senior associate Miluska Gutierrez Vega and associate Germán Gómez.
Clifford Chance’s team was led by partner Hugo Triaca (pictured centre, left), with support from associates Joyce Moore, María Fernanda Gadea Rivera and foreign law intern Juan Andrés Bosch Muñoz.
Estudio Echecopar’s team included partners Alonso Miranda (pictured centre) and Pablo Berckholtz (pictured centre, right), and associates Adrian Tovar and Lara Sarlui.
Shearman & Sterling’s team consisted of partner Alejandro Gordano (pictured right), associate Gabriela Laufer and visiting attorney Moisés Gonzalez Arroyo.
