Issuance of sovereign bonds Costa Rica 2019

The Government of Costa Rica acting through the Ministry of Finance, in accordance with Law No. 9708, offered a bond issuance in the international stock market for US$1,500,000,000.00 (one thousand five hundred million dollars); a) US $1,200,000,000.00 were issued at an interest rate of 6.125% with maturity date on February 19, 2031, and b) US $300,000,000 were issued at an interest rate of 7.158% with maturity date on March 12, 2045, consolidated in a single series along with the bonds previously issued by the Costa Rican Government on March 12, 2015.

Consortium Legal actively acted as legal counsel for Costa Rica law matters to Citigroup Global Markets Inc. and HSBC Securities (USA) Inc., jointly with the underwriters, reviewing the documentation related to the transaction, as well as issuing the supporting legal opinion regarding the execution of the transaction.  In addition, it was a key advisor on current national issues related to the country’s recent tax reforms and general economic situation.

The Bonds have not been registered under the U.S. Securities Act of 1933, and are offered only to qualified institutional buyers under Rule 144A of the Securities Act and outside the United States pursuant to Regulation S of said law. Citigroup Global Markets Inc., and HSBC Securities (USA) Inc. acted as Placing Banks, The Bank New York Mellon acted as Principal Paying Agent, Transfer Agent and Registrar of the issuance, and The Bank of New York Mellon (Luxembourg), S.A. acted as Paying Agent and Transfer Agent. The funds raised by the bond issuance will be used to turn the internal debt into external debt and/or to partially cancel external debt. This transaction was conducted for the maximum amount allowed under Law # 9708, and is of great importance to the domestic finances of the Government of Costa Rica.

Consortium advised Citigroup through Partners Randall Barquero León and Mario Quesada-Bianchini, Senior Associate Mónica Arias Madrigal and Associate Mariela Gómez Solís.

Hogan Lovells  LLP acted as International advisor to the underwriter through Evan Koster and Flavio Averbug.

Clifford Chance US LLP acted as International advisor to the Issuer through Hugo Triaca and Deborah Zandstra.            

In-House Lawyer: Rosibel Bermudez Fernández (Ministry of Finance ).