Chilean paper and pulp company CMPC has relied on Sullivan & Cromwell LLP in New York, Cuatrecasas (Chile) and Pinheiro Neto Advogados in São Paulo to issue sustainability-linked notes worth US$500 million.
The initial purchasers turned to Davis Polk & Wardwell LLP in New York and Philippi Prietocarrizosa Ferrero DU & Uría (Chile) for the deal, which closed on 22 June.
CMPC’s new bonds have a 6.125% interest rate and are due in 2033.
The issuer will use the proceeds from the offering for general corporate purposes.
As part of the transaction, CMPC has agreed to meet certain sustainability targets, including a 50% reduction of greenhouse gas emissions by 2030. Failure to meet the target will result in an interest rate hike.
CMPC produces and distributes paper throughout Latin America. Besides its Chilean operations, the company is also present in Argentina, Brazil, Colombia, Mexico and Peru.
The Chilean business regularly raises funds on the capital markets, often using sustainable and green securities. In October, it issued US$250 million worth of green bonds, while it became the first company in Chile to raise funds through a sustainability-linked bond offer back in 2021.
Counsel to CMPC
In-house counsel – Benjamín Concha
Sullivan & Cromwell LP
Partners Werner Ahlers and Benjamin Kent, and associates Renata Mascarenhas and Dylan Ottney in New York
Cuatrecasas (Chile)
Partner Macarena Ravinet and associates Federico Espinosa and Alvaro Caviedes in Santiago
Pinheiro Neto Advogados
Partner Vânia Marques Ribeiro and associates Anna Carolina Monte Alto da Silva and Amanda Della Togna in São Paulo
Counsel to BofA Securities, JP Morgan Securities and Scotia Capital
Davis Polk & Wardwell LLP
Partners Maurice Blanco and Michael Farber, counsel Katia Brener and associates Javier Félix and William Liang in New York
Philippi Prietocarrizosa Ferrero DU & Uría (Chile)
Director Daniel Parodi and associates Juan Ignacio Rosales, Tomás Canales and Antonio Marinovic in Santiago
