Chile

Chile may be an expensive buy for many EM investors, but the country’s status as the top-rated Latin American sovereign is making it attractive for environmental, social and governance-focused investors, said debt capital markets bankers, after the government sold its second green bond in two weeks.

Chile’s head of international finance told GlobalCapital that issuing a green bond had helped the sovereign attract new investors used to buying lower yielding paper, making the deal a win-win for both borrower and buy side. It is planning to bring its next green deal in euros.

Chile’s head of international finance told GlobalCapital that issuing a green bond had helped the sovereign attract new investors used to buying lower yielding paper, making the deal a win-win for both borrower and buy-side. It is planning to bring its next green deal in euros

Chile sold a $1.418bn bond on Monday, in the process becoming the first sovereign in Latin America to issue a green bond. The sovereign will look to repeat the feat in the euro market in the coming weeks.

Chile is looking to become the first sovereign from Latin America to issue a green bond, finance minister Felipe Larraín said on May 30.

Chile attracted more international investors than ever before into a local currency deal this week as it braved a volatile market to raise $1.5bn-equivalent of new money and a further $420m through an exchange of old bonds.

Chile raised around $1.5bn-equivalent of new peso debt on Wednesday in its fourth Euroclearable local currency deal.

Investors appear to be split over whether or not Turkey will follow through with its proposed purchase of a Russian S-400 missile system, in the face of likely sanctions from the US if it does.

Latin American bond bankers believe primary market activity will pick up next week after a volatile week led some banks to postpone previously scheduled mandate announcements.

Latin America’s best rated sovereign, Chile, will begin investor meetings on Thursday as it plots its third Euroclearable local currency deal.

Latin American bond buyers finally had some proper supply to soak up demand after two weeks without the kind of paper that tends to attract EM investors.

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