Clifford Chance

Clifford Chance advises on largest green project bond in Latin America

New York: Leading international law firm Clifford Chance advised Goldman Sachs & Co., J.P. Morgan Securities LLC as Joint Bookrunners and Scotia Capital (USA) Inc. as Global Coordinator and Green Structuring Agent, in the issuance by ISA Interchile S.A. (Interchile) of US$1.2 billion aggregate principal amount of 4.500% Senior Secured Notes due 2056 (the Notes). Interchile, a Chilean electricity transmission company, used the majority of the net proceeds from the sale of the Notes to refinance debt related to the construction of 2x500 kV Cardones – Polpaico transmission line in Chile.

The Notes were evaluated for ESG criteria by Sustainalytics. This transaction represents the largest green project bond from Latin America and the Caribbean in the power and utility sector, the lowest coupon transmission company project bond, and the longest tenor project bond from Latin America and the Caribbean. The Notes were listed on the Singapore Stock Exchange.

Lead partner Hugo Triaca commented: "We are extremely proud to have supported our clients and Interchile on the company's debut in the international capital markets, with a record green bond issuance. The firm is dedicated to providing advice to our clients that leads to a sustainable future for all."

Working with Hugo on this transaction was a New York-based team including partners Avrohom Gelber (Tax) and Paul Koppel (ERISA), associates Mariana Estévez, Luis R Fortuño and Thomas Koh, and summer law clerk Alexandra Machado.

Clifford Chance has a proven track record of advising on successful green bond transactions, and most recently advised CMI Energía on a US$700 million green bond and a US$300 million syndicated loan facility. The firm was recently named Law Firm of the Year and advised on two award winning transactions at the Environmental Finance Bond Awards 2021, including the  sovereign bond issuance by the Republic of Guatemala.