NEW YORK, Jan 18 (IFR) - Chile announced initial price thoughts of 3.85% area on a peso-denominated 144A/Reg S bond due 2021 ahead of expected pricing on Wednesday.
The new bond is a tap of a local instrument that priced last year and will be sold in a Euroclearable format to foreign investors, a source familiar with the deal told IFR.
The structure is similar to what has been done in Mexico, where the sovereign and some corporates such as oil company Pemex have sold domestic bonds that can be settled in both Euroclear and locally.
The security carries a 4.5% annual coupon, accruing from the issuance date of September 1 2016. The deal is governed by Chilean law and is listed on the Santiago Stock Exchange.
Bookrunners on the new tap are BNP Paribas, Citigroup, Goldman Sachs and JP Morgan. Chile’s local currency ratings are Aa3/AA/AA-. (Reporting by Paul Kilby; Editing by Marc Carnegie)