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Arnold & Porter Closes $7.5B of Sovereign Finance Deals in Latin America and Turkey in Q2

August 4, 2021

Arnold & Porter advised the Republics of Colombia, Panama and Turkey in notable sovereign finance deals in Q2 2021 totaling $7.5 billion.

Sovereign Finance practice co-head Whitney Debevoise noted that once inflation fears ebbed in June, “the market responded strongly to Panama’s innovative four-part transaction that had simultaneous issues in the global bond and local bond markets,” including a first-ever switch tender from a global bond into a Euroclearable Panamanian Treasury Bond.

And co-head Gregory Harrington said that Colombia’s ability to “place $3 billion along its curve before the inflation scare in the second quarter” led to a “dual-tranche offering that was the largest global bond issuance in Colombia’s history.” See below for more details on the practice’s Q2 activity.

Deal specifics

Republic of Colombia

  • Dual-tranche offering of $2.0 billion of global bonds due 2032 and $1.0 billion of global bonds due 2042. Closing: April 22, 2021.
    Significance: The total offering was the largest global bond issuance in Colombia’s history.
    Gross proceeds: ≈$3 billion

Partner Gregory Harrington led the team, which included counsel Carlos Pelaez and associates Mateo Morris and Valentina Garzon.

Republic of Panama

  • Dual-tranche offering of $750 million of global bonds due 2050 and $1.25 billion of Euroclearable treasury bonds (Bonos del Tesoro) due 2031; executed concurrently with a local tender offer and a global tender offer to purchase global bonds due 2024; closing June 30, 2021.
    Significance: This deal included a first-ever switch tender from a global bond into a Euroclearable Panamanian Treasury Bond.
    Gross proceeds: ≈$2 billion

Partner Whitney Debevoise led the team, which included partner Gregory Harrington, counsel Carlos Pelaez and associates Mateo Morris and Valentina Garzon.

Republic of Turkey

Partners Christopher Peterson and Jeremy Willcocks led the team, which included associates Eric An, Brady Randall and Sara Kim.

Arnold & Porter’s Sovereign Finance Practice

Arnold & Porter’s Sovereign Finance practice advises sovereigns, sub-sovereigns and state-owned companies on their most challenging financial transactions, including sovereign bond issues, liability management transactions, derivative operations, and re-financings/restructurings. Our lawyers are thought leaders in sovereign finance, contributing to the development of aggregated collective action, equal ranking clauses, US AID-guaranteed issues, sukuk bonds, and diaspora bonds—a product which we pioneered.

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