January 18, 2017 / 8:32 PM / 2 years ago

Chile launches tap of local bond at 3.80%

NEW YORK, Jan 18 (IFR) - Chile launched a Ps1trn (US$1.52bn) tap of a peso-denominated 144A/Reg S bond due 2021 at 3.80% ahead of expected pricing later on Wednesday, according to a lead on the deal.

The final yield comes at the wide end of guidance of 3.75%-3.80%, but inside initial price thoughts of 3.85% area.

The new bond is a tap of a local instrument that priced last year and is being 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 have sold domestic bonds that can be settled both locally and through Euroclear.

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)

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