Colbún in $160 Million Loan

Cleary Gottlieb represented Colbún S.A. (Colbún) in a $160 million sustainability-linked term loan with Sumitomo Mitsui Banking Corporation as administrative agent, sole lead arranger, sole bookrunner, and green loan coordinator.

The loan is a term SOFR loan maturing on October 5, 2029, guaranteed by various promissory notes (pagarés) issued under Chilean law.

The term loan agreement was signed on September 30, 2022, and the promissory notes were issued on October 5, 2022.

The loan was entered into under the Colbún green financing framework and is in line with the company’s commitment to sustainability strategies. The company committed to allocating an amount equal to the net proceeds of the loans to finance or refinance eligible green projects.

Colbún is the third-largest power generation company in Chile’s main power grid, the Integrated National System. Through its Fenix subsidiary, Colbún also operates in Peru’s National Interconnected System.