11 September 2023
- Fabricio Longhin (He/Him), Jonathan Zonis (He/Him), David Rondon, Pedro Buchanan, Hugo Triaca, Mariana Estévez, Joyce Moore, Emely Luna, Alberto Haito, Mari Correa, Avrohom Gelber, Wei Bin Tan, Gareth Old, Darren Littlejohn, Mark Pesso (He/Him), Andrew Young, Andrés Berry (He/Him), Paul Koppel, Thomas Koh (He/Him), Marc Mehlen, Maxime Budzin, Yolanda-Alma Ghita-Blujdescu, Marie-Elise Gueble, Patrizio Merotto, Nolan Groenland, Robin Houtveen, Paula Ferreira
- New York, Washington D.C., Luxembourg, Amsterdam
Clifford Chance advises on IDB Invest's US$1.8 billion A/B tariff stabilization purchase facility and securitization of MPC Securities
International law firm Clifford Chance advised IDB Invest as purchaser of record in connection with an A/B purchase facility for the sale and purchase of up to US$1.8 billion MPC Securities issued by a segregated fund administered by the Chilean Treasury, as part of a program created under Law No. 21,472 of Chile (the MPC Law) to temporarily shield consumers in Chile from electricity tariff increases. The firm also advised Goldman Sachs Co. LLC, as arranger, sole global coordinator and bookrunner and J.P. Morgan Securities LLC and Itau BBA USA Securities Inc., as bookrunners in connection with the securitization of the MPC Securities and Amicorp Group, in its capacities as onshore administrative agent, onshore verification agent and onshore calculation agent and manager of the issuer of the B-bond.
This is the first multiple-tranche B-bond ever, structured to accommodate and mobilize a wide investor base under the (i) Rule 144A/Regulation S and (ii) Section 4(a)(2) private placement formats. In addition to being one of the largest private capital market issuances in Latin America, the transaction reflects an effective collaboration between the public and private sectors to design and execute bespoke, tailored and scalable financial solutions that contribute to improving the quality of life of consumers.
The Clifford Chance team advising IDB Invest included partners Fabricio Longhin and Jonathan Zonis, supported by law clerks Paula Ferreira and Agata Radajczyk, associate David Rondon, and special legal consultant Pedro Buchanan. The team advising Goldman Sachs, as placement agent, and Goldman Sachs, JP Morgan and Itaú, as joint bookrunners, included partners Hugo Triaca and Mariana Estévez, associates Joyce Moore and Emely Luna, and law clerks Adriana Cabal Gutierrez, Mariana Gutiérrez Ruiz and Alessia Saracino. The team advising Amicorp included counsel Alberto Haito and associate Mari Correa. Additional support from Clifford Chance's international network was provided by:
- Tax: Partner Avrohom Gelber and associate Wei Bin Tan (New York)
- Derivatives, Security and True Sale Matters: Partners Gareth Old, Darren Littlejohn, Mark Pesso and Andrew Young, and associate Andrés Berry (New York)
- ERISA: Partner Paul Koppel and associate Thomas Koh (New York)
- Luxembourg: Partner Marc Mehlen, counsel Maxime Budzin, senior associate Yolanda-Alma Ghita-Blujdescu, and associates Marie-Elise Gueble and Patrizio Merotto
- Amsterdam: Counsel Nolan Groenland and senior associate Robin Houtveen