News
Date: 10/Mar/2008
Government announces 2008 bidding process schedule for us$ 1,200 million debt in local currency
In an unprecedented operation, the Government will place a 30-year bond in the local market, in line with market demands and the trend in developed countries on this matter. The bidding process schedule for debt placements and all relevant information on Central Government bonds are available on the Minster of Finance s web site
The Government of Chile, from March 26 to December, 2008, will call a monthly local market bidding process for bonds in local
currency amounting to US$ 1,200 million. The Bidding process schedule for these bonds is available, as of today, on the Ministry of Finance’s web site, in
Oficina de la Deuda Pública, (Investors Relations Office) which contains the following historic information:
- Summary of general terms and conditions on bonds issued in 2008
- Decree authorizing the issuance of the bonds in 2008
- Specimen of the bonds issued in 2008
- Operational regulation for bonds issued in 2008
- Bidding process schedule for bonds issued in 2008
These issues are within the scope of an indebtedness strategy contributing to keep s
UFficient
liquidity in the fixed-rate market, in order to set benchmarks for the financial market to develop. In addition, these issuances support macroeconomic efforts intended to materialize the government’s commitment with the exporting sector’s competitiveness, by providing resources to finance the enforcement of the budget in pesos, legal tender, thus preventing the liquidation of US dollars that might affect the
exchange rate.
As had been previously informed, the issues include Treasury Bonds: i) in pesos, legal tender, at a 10-year term (BTP-10) for a total amount of Ch$ 200,000 million; ii) in unidades de fomento at a 20-year term (BTU-20) for a total amount of 10.2 million in UF; and iii) in unidades de fomento, at a 30-year term (BTU-30), for a total amount of 10.2 million UF.
The government, for the first time, will place a 30-year bond, showing the confidence and maturity of our financial system at international level, and in line with the trend shown by developed countries. The decision to make an issuance at a longer term was made after a process of consultation with the Central Bank of Chile, relevant regulatory agencies and financial market players, which allows foreseeing a growing demand for this kind of bonds.
