Chilean Government Sells $299 Million of Five-, Seven-Year Debt

Chile sold $299 million of five- and seven-year bonds denominated in pesos and the country’s inflation-linked accounting unit after receiving bids for $700 million of the securities, according to a statement on the website of the central bank.

The government sold 39.4 billion pesos ($75.4 million) of seven-year peso bonds at a yield of 5.2 percent, $127.4 million of five-year inflation bonds at a yield of 2.57 percent and $95.8 million seven-year inflation bonds at a yield of 2.53 percent. The central bank manages bond auctions on behalf of the government.

Banks bought 62 percent of the seven-year fixed-rate bonds in pesos, 18 percent of the five-year inflation-linked bonds and 4.9 percent of the seven-year inflation-linked bonds. Pension funds and others bought the rest.

The bid-to-cover ratio was 3.3 for the peso bonds, 1.7 for the five-year inflation bonds and 2.4 for the seven-year inflation bonds.

To contact the reporter on this story: Sebastian Boyd in Santiago at sboyd9@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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