Chile sells bonds for coronavirus response

  • Chile said it raised $2 billion in a two-part bond sale on Tuesday, raising money to fund part of its emergency relief efforts to fight the coronavirus pandemic.
  • The sovereign, in a statement, said it sold $1.458 billion in new 2031 notes and added €500 million ($542 million) to its 1.625% 2025 euro-denominated bonds with order books that were "well supported".
  • According to the government and market sources, the new long 10-year notes priced at 99.958 with a coupon of 2.45% to yield 2.454% or 180 basis points over benchmark US Treasuries. The order book, with 250 investors, reached $8.2 billion, more than 5.7 times what was sold.
  • Chile's Finance Ministry said, the government will use the money to fund programs to support the economy during the COVID-19 pandemic. The government has announced a series of measures designed to lessen the economic impact of the coronavirus, including a $3 billion guarantee fund for small businesses.

 (Source: Latin Finance)