Chile to price €1.75 billion of green notes due in 5.5 and 15 years

By Rebecca Melvin

Concord, N.H., July 21 – The Republic of Chile is pricing €1.75 billion of green notes in dual tranches due in 5.5 years and 15 years (expected ratings: A1/A/A-), according to market sources.

The €1 billion long five-year tranche was being priced at mid-swaps plus 60 basis points, which was tight to price guidance of mid-swaps plus 65 bps to 70 bps and initial talk in the mid-swaps plus 85 bps area.

The yield on the €750 million 15-year tranche was set at mid-swaps plus 110 bps, which was tight to guidance of mid-swaps plus 115 bps to 120 bps and initial talk in the mid-swaps plus 130 bps area.

The 2027 notes are callable after Dec. 26, 2026, and the 2036 notes are callable after April 26, 2026 at par plus accrued interest and additional amounts.

The joint bookrunners of the deal, which is registered with the Securities and Exchange Commission, are BNP Paribas, Citigroup Global Markets Ltd., Goldman Sachs & Co. LLC, J.P. Morgan Securities plc, Banco Santander SA and Scotiabank Europe plc.

The proceeds will be used to invest in eligible social expenditures under the sovereign’s sustainable bond framework.

There is a concurrent U.S. dollar transaction that may follow as early as Thursday, subject to market conditions.

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