CGE. Local bond offering and placement

1.      Deal Description

Guerrero Olivos represented Compañía General de Electricidad S.A. “CGE”, a publicly traded energy distribution and transmission corporation, meeting 45% of the market demand and part of the Naturgy Group, Spanish natural gas and electrical energy utilities company, in a USD350 million bond offering and registration with the Financial Market Commission (local regulator “CMF”) and in the placement of one of the lines in the financial market.

Our capital markets team worked in the registration of 4 new short and long term lines of bonds and in the placement of 1 of the lines (P series) for an amount of approximately USD 76 million.

Relevance to this transaction is that it was one of the first operations carried out in accordance to the new regulation issued by the CMF as a consequence of the pandemia, which purpose was to simplify and accelerate the regulatory regime of securities’ registration. Therefore, it required a thorough analysis of the new regulation to define the registration and placement process for the investors. In addition, the offering was made without a legal prospectus, making use of one of the new exceptions granted by the CMF to the issuers.

Also, CGE obtained a historical 1% placement rate, the lower in the company’s history, representing an estimated spread of 1,55%.

2.      Counsel list

Counsel to CGE.: Guerrero Olivos

Partner: Roberto Guerrero

Senior associate: César Gálvez

Associate: Abel Flores

3.      Date of closing

Registration: 19/06/2020

Placement: 31/07/2020

4.      Deal Value

USD350 million

5.      Jurisdictions involved