Chile first Latam issuer of 2016 with US$700m offering

martes 12 de enero de 2016 16:36 GYT

By Paul Kilby

NEW YORK, Jan 12 (IFR) - Chile plans to sell approximately US$700m of 10-year bonds on Tuesday at a final spread of US Treasuries plus 130bp.

Pricing comes in line with guidance of 130bp area (+/5bp), and 10bp inside initial price thoughts of 140bp area.

Final size will be determined by the amount of tenders that are accepted in a liability management transaction taking place in conjunction with the dollar bond.

In the tender, the sovereign is targeting 3.875% 2020s, 3.25% 2021s, 2.25% 2022s and 3.125% 2025s. The purchase price to be paid on those notes will be determined using fixed spreads of T+57bp, T+88bp, T+59bp and T+91bp, respectively.

Chile is the first Latin American issuer to tap the dollar market in what has been a quiet start to the year for issuance from the region.

Leads are Bank of America Merrill Lynch, Citigroup, HSBC and Santander, the same banks which priced a EUR1.2bn 10-year euro bond for the sovereign earlier on Tuesday.

That deal priced today at 98.056 with a 1.75% coupon to yield 1.966% or mid-swaps plus 110bp, the tight end of talk of 115bp (+/-5bp), and inside initial thoughts of 120bp area. (Reporting By Paul Kilby; Editing by Jack Doran)