By Paul Kilby
NEW YORK, Jan 12 (IFR) - The Republic of Chile announced on
Thursday a peso-denominated 144A/Reg S bond due February 28
2021, with pricing set as early as January 18.
The new bond is a tap of a local instrument that priced last
year and will be 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 such as oil company
Pemex have sold domestic bonds that can be settled in both
Euroclear and locally.
The idea is to widen the appeal of local currency
instruments among foreign accounts and bring more depth to that
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 are BNP Paribas, Citigroup, Goldman Sachs and JP
Morgan. Local currency ratings are Aa3/AA/AA-.
The bond is being led by BNP Paribas, Citigroup, Goldman
Sachs and JP Morgan. The country's local currency ratings are
(Reporting by Paul Kilby; Editing by Marc Carnegie)