Sovereign Report

Feb 1, 2003

Chile and Mexico's One-Two Punch

In early January, Mexico and Chile took advantage of pent up demand for emerging market debt to raise a total of $3 billion in the international capital markets in two days. Chile issued its largest bond to date with a $1 billion, 10-year bond. With US Treasury yields at a historic lows, coupled with Chile's A- rating, the sovereign was able to launch the bond at 163 basis points over comparable US Treasuries for a yield to maturity of 5.62%. The bonds carry a 5.5% coupon and priced at 99.091. Deutsche Bank and JP Morgan managed the sale. The government says that it will use $460 million of the bond's proceeds to finance its budget deficit and the remainder to refinance debt maturing in 2003. In April 2002, Chile issued a $650 million bond, which priced at 116 basis points over US Treasuries....

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial

Upcoming Events

Poll

Which area will be most profitable for investment banks in LatAm in 2016?

Vote    




Popular Searches