Chile sells euro green bonds
June 26, 2019 |
Sovereign issuer pays record low yield on $979m in new 12-year notes
Chile has printed €861m ($979m) in euro-denominated green bonds at 50bp over mid-swaps, the lowest spread for the sovereign issuer in the European market since 2017.
The bookrunners JPMorgan, Crédit Agricole and Société Générale priced the 12-year notes at 0.83%, a new low for a Chilean sovereign bond in euros, offering a negative new issue premium of 10bp, the finance ministry said in a statement. Chile had previously paid 1.472%, or 60bp over mid-swaps, when it added €400m to its 2025 notes in May 2015.
Demand for the new notes reached €4.02bn, or 4.7 times the amount offered, with orders coming from more than 200 accounts in Europe, Asia and the Americas, the ministry said.
Cleary Gottlieb was Chile's international legal advisor, while Morales y Besa was the local advisor.
Last week, Chile became the first Latin American sovereign to issue a green bond, selling $1.42bn in 2050 notes at 3.53%, or 95bp over US Treasury notes. The issue had $523m in new debt and $895m for a buyback of seven bonds that mature between 2020 and 2047.
Finance Minister Felipe Larraín said in January that Chile plans to raise $1.5bn from the sale of international bonds in 2019.