Costa Rica in $1.5 Billion Debt Offering

November 6, 2023

Cleary Gottlieb represented the Republic of Costa Rica in the issuance of $1.5 billion aggregate principal amount of 7.3% notes due 2054.

BofA Securities LLC and J.P. Morgan Securities LLC acted as initial purchasers in the transaction.

The offering priced on November 6, 2023, and is expected to settle on November 13, 2023. The offering was made on a Rule 144A/Regulation S basis, and the bonds are expected to be admitted to trading on the London Stock Exchange’s International Securities Market.

This issuance is the second under Costa Rica’s Law No. 10,332 enacted by Costa Rica’s Legislative Assembly in December 2020, which authorizes the Ministry of Finance to issue bonds for up to $5 billion in the international capital markets by December 2025. Costa Rica had issued $1.5 billion under such law in April 2023, a transaction in which Cleary represented the initial purchasers.

This transaction is part of the Ministry of Finance’s efforts to improve effective interest rates and other debt terms, as compared to the conditions available in Costa Rica’s domestic market. Costa Rica intends to use the proceeds of this offering for approved budgetary needs, including the refinancing of domestic and external indebtedness of Costa Rica.