BancoEstado in Establishment of $1 Billion MTN Program

January 25, 2012

Cleary Gottlieb represented Banco del Estado de Chile in the establishment of its MTN Program under which, either directly or through its New York Branch, it may issue senior unsecured medium term notes of various forms up to $1 billion in the aggregate. Deutsche Bank acted as arranger and more than fifteen other investment banks joined as dealers. The transaction closed on January 25.

Medium-term note programs allow issuers to “take down” securities off their existing shelf registration statements with minimum transaction costs. This facilitates offerings of smaller amounts of securities than would otherwise be the case, and assists issuers in managing their liabilities and cash more precisely. The MTN Program was listed on the Luxembourg Stock Exchange and Notes to be sold under the MTN Program may be issued in the United States under the Rule 144A exception and in other jurisdictions in reliance on Regulation S.

Banco del Estado de Chile, wholly owned by the Republic of Chile, is one of the oldest financial institutions in Chile, with its predecessor starting operations in 1855. Banco del Estado de Chile is also one of the largest financial institutions in Chile in terms of aggregate loans and in the number of customers and geographic coverage. In 2005, Banco del Estado de Chile opened its New York branch to better serve cross-border needs of its corporate and public-sector customers.