Chile

South America’s best-rated sovereign sold its second cross-border bond in three business days on Monday, matching the lowest spread it has ever paid in the dollar market — despite offering more new issue premium than recent lower rated Lat Am deals.

DCM bankers said Chile was reaping the rewards of repeated issuance in the euro market after the sovereign clinched an €830m 11 year deal at a slimmer than usual premium to its dollar curve.

Chilean lender Banco del Estado de Chile (Banco Estado) returned to the Aussie dollar market last week with a A$40m ($31.9m) trade.

Former president Sebastián Piñera won Chile’s elections on Sunday to book himself a second stint in charge of the Latin American country with the best credit rating. But though Chilean bonds rallied marginally on the news, analysts say the incoming leader faces a struggle to make significant policy changes.

Banco Santander Chile sold $500m of three year bonds on Tuesday in its first dollar-denominated sale in three and a half years, offering investors a rare chance to buy such highly rated paper.

Banco Santander Chile sold $500m of three year bonds on Tuesday in its first dollar-denominated sale in three and a half years, taking advantage of a beneficial swap rate for opportunistic trades, according to DCM bankers.

As Venezuela edges closer to a catastrophic default, bond issue markets in Latin America continued to thrive this week as three Lat Am borrowers snatched blow-out deals.

Falabella, the Chilean retail company, raised $400m of new debt in a 5.5 times subscribed deal on Monday, as bond bankers say the party in Lat Am bond markets is set to continue.

Chile-headquartered Falabella will begin investor meetings on Wednesday as it plots its first international bond issuance in three years.

Chilean power company Colbún will buy back more than 70% of its existing $500m 6% 2020s after wrapping up the early-bird portion of a tender offer.

Extraordinarily strong appetite for EM corporate paper helped power company Colbún become the latest Latin American borrower to issue through its existing curve on Wednesday.

Chilean credit union Cooperativa del Personal de la Universidad de Chile (Coopeuch) joins the ranks of Chilean borrowers welcomed into the Swiss franc bond market. Thursday’s outing further illustrates that the love affair of the Chilean borrower and Swiss buyer not only endures but burns brightly.