BancoEstado in $600 Million Inaugural AT1 Offering

April 25, 2024

Cleary Gottlieb represented Banco del Estado de Chile (BancoEstado) in a Rule 144A/Reg S offering of its $600 million 7.95% perpetual additional Tier 1 (AT1) notes.

The transaction marks BancoEstado’s inaugural issuance of AT1 bonds in the international capital markets and is aimed at assisting BancoEstado’s compliance with the recently implemented Basel III capital adequacy requirements in Chile following an amendment to the General Banking Law in 2019 and subsequent regulation.

The offering priced on April 25, 2024, and is expected to close on May 2, 2024.

BNP Paribas Securities Corp., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., Crédit Agricole Securities (USA) Inc., and Goldman Sachs & Co. LLC acted as initial purchasers. HSBC Securities (USA) Inc. acted as structuring advisor.

BancoEstado is wholly owned by the Republic of Chile and is one of the oldest financial institutions in Chile, with its predecessor starting operations in 1855. BancoEstado is also one of the largest financial institutions in Chile in terms of aggregate loans, number of customers, and geographic coverage.