Clifford Chance

Clifford Chance advises the Republic of Costa Rica on its return to the international capital markets with a US$1.5 billion dual-tranche notes offering

A Clifford Chance team led by New York-based Capital Markets partner Hugo Triaca and London-based Finance partner Deborah Zandstra represented the Republic of Costa Rica on a dual-tranche offering of (a) US$1.2 billion aggregate principal amount of 6.125% Notes due 2031 (the ‘‘2031 Notes’’) and (b) US$300 million aggregate principal amount of 7.158% Notes due 2045 (the ‘‘New 2045 Notes’’), consisting of additional 2045 notes originally issued in 2015 (the 2031 Notes and the New 2045 Notes, collectively, the ‘‘Notes’’). After giving effect to the offering of the New 2045 Notes, the total amount outstanding of Costa Rica’s 7.158% Notes due 2045 is US$1.3 billion.

This was the first international capital markets transaction for Costa Rica under President Alvarado Quesada’s administration, marking the country’s return to the international capital markets since its last transaction in March 2015. The Republic of Costa Rica expects to use the proceeds from the Notes offering to satisfy its approved budgetary needs, including the refinancing of domestic and external indebtedness.

The Notes were offered and sold in the United States to qualified institutional buyers only, in accordance with Rule 144A and outside the United States to non- US persons in accordance with Regulation S under the US Securities Act of 1933. The Notes were listed on the Official List of the Luxembourg Stock Exchange.

Hugo Triaca and Deborah Zandstra were assisted by associate Mariana Estevez and international law clerk Alvaro Rojas. Partner Avrohom Gelber advised on tax matters.

Clifford Chance has been recognized for decades as a preeminent law firm in Latin America. The Firm has led the way in developing successful, novel financing structures for a diverse client-base, and is constantly innovating its service offering, such as with a dedicated Latin America group specialized in capital markets, bank and project financing structures representing initial purchasers, underwriters, issuers and investors. The Firm's lawyers have extensive experience in the region's distinct business, legal and regulatory landscapes. They provide expertise that cuts across a full range of relevant practices, while aligning pioneering solutions with the unique characteristics of the Latin American market and the changing needs of clients.