Chile Sells $1.5 Billion of Bonds in First Overseas Issue in Six Years
Chile sold $1.5 billion of 10-year dollar and peso bonds in the country’s first international offering in six years.
The country issued $1 billion of bonds to yield 90 basis points, or 0.9 percentage point, above U.S. Treasuries and $520 million of peso notes to yield 5.5 percent, according to data compiled by Bloomberg.
Chile sold the bonds to help cover the $8.4 billion cost of rebuilding from a February earthquake. Moody’s Investors Service in June lifted the country’s rating to Aa3, the fourth-highest investment grade. Standard & Poor’s ranks it one level lower at A+.
The yield on Chile’s 5.5 percent dollar bonds due in 2013 fell eight basis points to 1.69 percent at 5 p.m. in New York, according to data compiled by Bloomberg. Yields have dropped 18 basis points this year.
Citigroup Inc., HSBC Holdings Plc and JPMorgan Chase & Co. managed the sale, said the person, who declined to be identified because terms aren’t set.
To contact the reporters on this story: Veronica Navarro Espinosa in New York at vespinosa@bloomberg.net; Sebastian Boyd in Santiago at sboyd9@bloomberg.net
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