Chile launches capped one-day tender for four series of its notes

By Sarah Lizee

Olympia, Wash., Jan. 21 – The Republic of Chile launched a one-day capped cash tender offer for four series of its notes, according to a press release.

The cap has not yet been determined.

The notes covered by the tender are as follows, with their hypothetical purchase prices per €1,000 principal amount:

• €1.24 billion 1 5/8% notes due 2025 (ISIN: XS1151586945) with pricing to be set using the 2025 interpolated mid-swap rate plus 20 basis points for a hypothetical purchase price of €1,079.19;

• €1.2 billion 1¾% notes due 2026 (ISIN: XS1346652891) with pricing to be set using the 2026 interpolated mid-swap rate plus 26 bps for a hypothetical purchase price of €1,094.77;

• €830 million 1.44% notes due 2029 (ISIN: XS1760409042) with pricing to be set using the 2029 interpolated mid-swap rate plus 33 bps for a hypothetical purchase price of €1,089.89; and

• €1.65 billion 1 7/8% notes due 2030 (ISIN: XS1236685613) with pricing to be set using the 2030 interpolated mid-swap rate plus 36 bps for a hypothetical purchase price of €1,136.

Holders will also receive accrued interest.

The offer is conditioned on the pricing of new notes. The republic plans to offer a new 20-year green note and a tap of its 0.83% green notes due 2031.

If the aggregate purchase price of all tender orders for a series of old notes would exceed the maximum purchase amount applicable to such series and proration occurs, preference will be given to tender orders for 2025 notes or 2026 notes that are submitted concurrently with the submission of an indication of interest for the 2031 notes and tender orders for 2029 notes or 2030 notes that are submitted concurrently with the submission of an indication of interest for the 2040 notes.

The offer expired at 6 a.m. ET on Jan. 21 for non-preferred tenders and 9 a.m. ET on Jan. 21 for preferred tenders.

Settlement is slated for Jan. 28.

Lucid Issuer Services Ltd. (+44 20 7704 0880, chile@lucid-is.com) is the information and tender agent.

Banco Santander, SA – London Branch (+44 20 7756 6909, +44 20 7756 6646, tommaso.grospietro@santanderCIB.co.uk, king.cheung@santanderCIB.co.uk), BNP Paribas (+44 20 7595 8668, liability.management@bnpparibas.com) and Societe Generale (+33 1 4213 3240, liability.management@sgcib.com) are the dealer managers.

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