Chile

Chile will return to international markets with a green bond to fund transport plans after its portfolio of projects received a favourable opinion from third-party providers.

Embotelladora Andina, the third largest Coca-Cola bottler in Latin America and seventh largest in the world, will begin a roadshow on Monday ahead of an expected 10 year bond.

Four Chilean issuers raised dollar funding in the first three days of the first full week of 2020, as hefty order books suggested investors shared the government’s confidence in the country’s outlook.

Two companies turned up the heat another notch in Latin American primary bond markets on Wednesday, as both Coca-Cola Femsa and CMPC sold 10 year deals inside the ranges they had indicated at guidance.

Santander’s Chilean arm on Tuesday joined the early wave of dollar issuers from the country, pricing a $750m five senior unsecured bond 2bp inside where state-owned Banco del Estado de Chile sold an identical trade a day earlier.

The world’s largest copper producer, Codelco, returned to bond markets on Tuesday with a well received $2bn dual tranche as predictions that Chilean issuers would be very active in January begin to look very accurate.

State-owned lender Banco del Estado de Chile (Banco Estado) kicked off what could be a busy January for Chilean issuance with a $750m five year senior unsecured deal on Monday.

Chile’s head of international finance has told GlobalCapital that the debt management office is making communication with investors its number one priority as it announced borrowing plans — including an atypically large amount of international issuance — earlier than usual after a turbulent fourth quarter.

Latin American bond bankers are reporting busy January pipelines as issuers look to take advantage of low rates before the US election season hits next year.

Chilean mobile phone operator WOM approached bond markets for the first time on Thursday seeking $450m of senior unsecured notes to refinance its existing capital structure and complete a dividend recap.

The only two corporate issuers from Latin America this week sailed through primary markets as bankers said low rates and technical factors would continue to override socio-political volatility and sluggish economies in the region.

State Grid Corporation of China is seeking a loan to support its $2.23bn acquisition of Sempra Energy’s Chilean business. Even though it is a time of turmoil in Chile, lenders are bidding aggressively for the deal, owing to the state-owned Chinese company’s strong credentials, writes Pan Yue.