Published on 1/22/2020 in the Prospect News Emerging Markets Daily and Prospect News Green Finance Daily.
New Issue: Chile prices 1.96 billion of new green notes due 2040, tap of 0.83% notes due 2031
By Rebecca Melvin
New York, Jan. 22 The Republic of Chile priced 1,962,702,000 of new green notes on Tuesday, including 1,269,017,000 of new 20-year notes and a 693,685,000 tap of its outstanding 0.83% notes due 2031, according to term sheets filed with the Securities and Exchange Commission.
The 1,269,017,000 of 1Ό% 20-year notes priced at 99.142 to yield 1.299%, or 80 basis points over mid-swaps. That pricing was the tight end of guidance for a yield spread of mid-swaps plus 80 bps to 85 bps, which was tightened from initial price talk of mid-swaps plus 95 bps to 100 bps.
The 693,685,000 tap of 0.83% notes due 2031 was reoffered at a price of 101.447 to yield 0.695%, or mid-swaps plus 50 bps, according to a syndicate source. That pricing was at the low end of guidance for a yield spread of mid-swaps plus 50 bps to 55 bps, which was tightened from initial price talk of mid-swaps plus 65 bps area.
In June 2019, Chile issued 861 million notes due July 2, 2031 priced to yield mid-swaps plus 50 bps, Prospect News reported.
BNP Paribas, Banco Santander SA and Societe Generale CIB are joint bookrunners of the Securities and Exchange Commission-registered notes.
The proceeds are expected to be used to fund a tender offer and for general purposes of the government and to invest an amount equal to the proceeds from the sale of the notes into projects that may qualify as eligible green expenditures under Chiles green bond framework.
| Issuer: | Republic of Chile
|
| Amount: | 1,962,702,000
|
| Description: | Senior notes
|
| Bookrunners: | BNP Paribas, Banco Santander SA and Societe Generale CIB
|
| Trade date: | Jan. 21
|
| Settlement date: | Jan. 29
|
| Expected ratings: | Moodys: A1
|
| S&P: A+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Notes due 2040
|
| Amount: | 1,269,017,000
|
| Maturity: | Jan. 29, 2040
|
| Coupon: | 1Ό%
|
| Price: | 99.142
|
| Yield: | 1.299%
|
| Spread: | Mid-swaps plus 80 bps
|
| Talk: | Mid-swaps plus 80-85 bps, tightened from mid-swaps plus 95-100 bps
|
|
|
| Notes due 2031
|
| Amount: | 693,685,000 add-on
|
| Maturity: | July 2, 2031
|
| Coupon: | 0.83%
|
| Price: | 101.447
|
| Yield: | 0.695%
|
| Spread: | Mid-swaps plus 50 bps
|
| Talk: | Mid-swaps plus 50-55 bps, tightened from mid-swaps plus 65 bps area
|
| Original issue: | 861 million issued on July 2, 2019 at mid-swaps plus 50 bps
|
| Total amount: | 1,554,685,000
|
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