Milbank, Clifford Chance, Carey and Claro in inaugural green bond
Milbank in New York and Carey in Santiago have helped Chilean electricity company Sociedad de Transmisión Austral (STA) issue its first green bonds, raising US$390 million.
The bookrunners hired Clifford Chance LLP in New York and Claro & Cía in Santiago.
The bonds carry a 4% coupon and mature in 2032. The offering closed on 14 January.
STA will use the proceeds from the offering to refinance debt and for general corporate purposes, including capital expenditures related to transmission projects classified as green projects.
STA is the transmission branch of Chilean power group Sociedad Austral de Electricidad (SAESA).
Green bonds are used by issuers to raise funds for eco-friendly projects and are a popular financial instrument among Latin American businesses. At the start of the year, Jalles Machado, a Brazilian sugar producer, issued its first green debt for 451 million reais (US$79 million). In November, Brazilian agribusiness Caramuru Alimentos raised 355 million reais (US$63 million) in a green bond offering, while Chilean utility company Colbún made a US$600 million green offering a month prior to finance the construction of renewable energy projects.
Counsel to Sociedad de Transmisión Austral (STA)
Partners Carlos Albarracín and Andrew Walker, associates Mandeep Kalra, Cheyne Cudby and David Hanno, and international associate Josefina Ayala Wilkins in New York
Partners Felipe Moro, Manuel José Garcés and José Tomás Hurley, and associates Loreto Ribera, Valentina Mendoza and Tomás Hernández in Santiago
Counsel to Itaú BBA and Scotia Capital
Clifford Chance LLP
Partners Hugo Triaca and Avrohom Gelber in New York
Claro & Cía
Partner José Luis Ambrosy and associate Matias Lopez in Santiago