Bond of the Year: Chile’s Electricity Tariff Monetization

Back to All Thought Leadership

LatinFinance chose as the “Bond of the Year” the US$489 million bond issued in 2021 by Chile Electricity PEC SpA governed under Rule 144A/Regulation S of the Securities Act of 1933 of the United States of America, which allowed electricity generation companies to monetize their accounts receivable derived from Law No. 21,185, on temporary stabilization of electricity tariffs as a result of the pandemic and social demands in Chile.

Carey in Chile, together with Clifford Chance and Latham & Watkins in New York, advised Goldman Sachs, as global coordinator, bookrunner, initial buyer and commitment provider, in the issuance of this guaranteed bond, Zero Coupon, due in 2028.

This iconic transaction had unique characteristics, being the first bond in Latin America linked to rate stabilization, where multiple teams participated in the negotiation of complex documents in order to implement this innovative financial structure. The operation was very challenging for Carey’s team because it involved an in-depth legal analysis regarding the mechanism for stabilizing electricity tariffs introduced by Law 21,185 of 2019 and the accounts receivable generated under said mechanism.

Check out more details here: https://lnkd.in/d5x2rg-D

Sign In

[login_form] Lost Password