Clifford Chance

Clifford Chance advises on US$1 billion notes issuance and tender offer by the Republic of El Salvador

Global law firm Clifford Chance has advised BofA Securities, Inc. (i) as initial purchaser, in connection with the offering by the Republic of El Salvador (El Salvador) of US$1 billion aggregate principal amount of 9.650% Notes due 2054 (the New Notes), and (ii) as dealer manager, in connection with a concurrent tender offer directed to the holders of El Salvador's outstanding 6.375% Notes due 2027, 8.625% Notes due 2029, 9.250% Notes due 2030, 8.250% Notes due 2032 and 7.625% Notes due 2034.

El Salvador used a portion of the proceeds from the offering of the New Notes to fund the repurchase of notes tendered in the tender offer, with the remainder of the proceeds to be used to pay direct obligations of the Ministry of Finance pursuant to El Salvador's approved budget.

This transaction was part of a broader program by El Salvador to proactively manage its debt and support sustainability and conservation efforts within the country.

The Clifford Chance team advising on the transaction was led by partner Hugo Triaca and included associates Joyce Moore and Alexandra Machado, and foreign lawyer Juan Andrés Bosch.

Clifford Chance also recently advised on (i) the World's Largest Debt for Nature transaction for River Conservation in El Salvador, and (ii) the Republic of El Salvador's return to the international capital markets in May 2024.