Republic of Guatemala Issues US$1.2 Billion in Sovereign Debt
04.29.20
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The Firm recently represented the Republic of Guatemala in connection with the issuance and sale of an additional US$700 million of its 6.125% Notes due 2050 in a reopening of the Republic’s existing 2050 notes originally issued in 2019. The Republic also issued a “Social Bond” in the form of 5.375% Notes due 2032 in a principal amount of US$500 million. The proceeds of the 2050 notes will be used for general budget purposes. The proceeds of the 2032 notes will be used for social investment and to support sectors of the Guatemalan economy affected by the coronavirus disease 2019, in compliance with the Social Bond Principles published by the ICMA.
The sovereign debt offerings were conducted in reliance on the exemptions from registration under Rule 144A and Regulation S under the U.S. Securities Act of 1933, as amended. The transaction was approved by the government of the Republic of Guatemala and managed by the Ministry of Finance.
The Simpson Thacher team for the transaction included Jaime Mercado, Kirsten L. Davis, Alexander González Castillo and M. Justina Richards (Capital Markets); and Jonathan Cantor and Brian Mendick (Tax).