By Marisa Wong
Los Angeles, May 5 – The Republic of Chile priced $2 billion of bonds (A1/A+/A-) in two parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The republic priced a $300 million tap of its 2.45% notes due Jan. 31, 2031 at 100.922 to yield 2.341%, or a spread of 75 basis points over Treasuries.
The tap was initially reported at $500 million in size. Talk was in the Treasuries plus 100 bps area, according to a market source.
With the add-on, the total amount of 2.45% notes due 2031 outstanding will be $1,758,000,000.
A $1.7 billion tranche of 3.1% social bonds due May 7, 2041 priced at 97.06 to yield 3.302%, or a Treasuries plus 115 bps spread, lower than Treasuries plus 145 bps area talk.
Proceeds of the notes sold under Chile’s sustainable bond framework will be used to fund eligible social expenditures, which may include tax and operational expenditures such as support for the elderly or people with special needs in vulnerable situations, human rights victims, low-income families and health and other services, according to a 424B2 filing with the Securities and Exchange Commission.
BofA Securities Inc., Credit Agricole Securities (USA) Inc. and Goldman Sachs & Co. LLC are joint bookrunners of the dual-tranche offering.
| Issuer: | Republic of Chile
|
| Amount: | $2 billion
|
| Bookrunners: | BofA Securities Inc., Credit Agricole Securities (USA) Inc. and Goldman Sachs & Co. LLC
|
| Trade date: | May 4
|
| Settlement date: | May 7
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Fitch: A-
|
|
|
| 2031 tap
|
| Amount: | $300 million
|
| Issue: | Notes, add-on
|
| Maturity: | Jan. 31, 2031
|
| Coupon: | 2.45%
|
| Price: | 100.922
|
| Yield to worst: | 2.341%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 100 bps area
|
| Call feature: | Three-month par call on or after Oct. 31, 2030
|
| Original issue: | $1,458,000,000 issued on May 12, 2020
|
|
|
| 2041 social bonds
|
| Amount: | $1.7 billion
|
| Issue: | Social bonds
|
| Maturity: | May 7, 2041
|
| Coupon: | 3.1%
|
| Price: | 97.06
|
| Yield to worst: | 3.302%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | Treasuries plus 145 bps area
|
|
|
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