Chile

Chilean bank raises $133m in its first deal in the Taiwanese market

Bankers say Chilean issuers will dominate early autumn supply from Latin America as Alfa Desarrollo eyes $1.2bn bond

Chilean telco is the first LatAm borrower to indicate intention to issue in September

Andrés Pérez, who has led Chile through two consecutive record breaking years of international bond issuance, has left his position as head of international finance at the Latin American sovereign to become chief economist at Itaú Chile.

Export Development Canada (EDC) sold the first offshore Chilean peso bond of the year as it dropped into the currency in search of short dated borrowing earlier this week.

Having sold €1.75bn ($2.1bn) of social bonds in euros on Wednesday, Chile returned to the dollar market for the fourth time this year on Thursday to print $3.75bn of social bonds across three tranches — the week after it had increased its 2021 funding needs by $8bn.

Long dated issuance returned to EM primary bond markets in force this week as DCM bankers said issuers were seeing the latest fall in US Treasury yields as a sign that they should accelerate funding plans. Although several investors remain cautious on the prospects for rates markets, the weight of cash to be put to work is set to keep funding conditions attractive for EM borrowers, writes Mariam Meskin and Oliver West.

Chile began chipping away on Wednesday at the bumper funding needs it announced last week, raising €1.75bn ($2.1bn) in social bonds in the euro market as investors said the government, which still has the lowest debt to GDP ratio in Latin America, has space to print more.

Chilean electricity transmission company Interchile sold its first international bond on Monday, braving difficult market conditions to raise $1.2bn of green bonds.

Chile’s head of international finance told GlobalCapital this week that the country was likely to tap euro and dollar bond markets again this year after it increased its 2021 funding needs by $8bn.

Interchile, the Chilean electricity transmission company owned by Colombian government-controlled conglomerate ISA, began investor calls on Tuesday ahead of a potential green bond issue.

The Bank of Nova Scotia’s Chilean subsidiary turned to the Swiss franc for its debut international bond sale on Tuesday, achieving a cost of funding well inside what it could have achieved in the domestic market.