Chile

Chile completed its $3.3bn of external funding needs for the year in two days this week, tapping both euro and dollar markets for green bonds that EM accounts say are becoming increasingly important for their end investors.

The day after it sold €1.961bn of green bonds in the euro market, Chile jumped on borrower-friendly conditions in dollars to complete its higher than usual external funding needs for the year.

Investors said that Chile’s focus on green bonds should allow it to diversify its funding base as the sovereign shrugged off political uncertainty to clinch tight pricing on its return to euro markets on Tuesday.

The Republic of Chile has mandated banks to arrange its second euro green bond offering, as well as launching a tender offer of outstanding euro debt.

Chemicals company SQM became the latest Chilean firm to issue internationally on Thursday, as the country’s corporates continue to take advantage of high levels of liquidity to pre-fund ahead of a potentially volatile year.

One pricing and one roadshow announcement on Wednesday ensured that Chile continues to lead the way this year in terms of Latin American bond issuance.

Latin America’s rip-roaring start to the year took a slide down the credit curve on Tuesday with two high yield deals — to no discernible impact on investor appetite.

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.