Costa Rica’s $1.5 Billion Debt Offering

Cleary Gottlieb represented J.P. Morgan Securities LLC and Santander US Capital Markets LLC, as initial purchasers, in the issuance by the Republic of Costa Rica (Costa Rica) of $1.5 billion aggregate principal amount of 6.55% bonds due 2034.

The offering priced on March 27, 2023, and is expected to settle on April 3, 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 first 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.

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.