Chile

Chilean copper miner Codelco is having trouble persuading existing note holders to part with their paper, after printing $2bn of new debt at record low yields in September.

Corporación Nacional del Cobre de Chile (Codelco), the world’s largest copper producer, extended the run of well received long dated bonds from Latin American issuers as it notched $2bn of new funding in a dual tranche offering.

Chile’s decision to issue a second green bond in two weeks with a 12 year euro transaction paid off in the shape of 64 first-time investors, as more Latin American issuers turn to green finance.

A pair of emerging market banks placed MTNs this week. In Australian dollars, Banco del Estado de Chile printed a 10 year note on Tuesday, while on Monday, Qatar National bank placed short end dollar paper.

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.