The Ministry of Finance today, Monday, September 28, completed the placement of two sovereign bonds of the Republic of Chile denominated in Swiss francs (CHF), for a total amount of CHF 380 million (equivalent to USD 458 million), in 5- and 10-year tranches. This is the Republic's third transaction in international markets this year and Chile's first sovereign issuance denominated in Swiss francs. The transaction is part of the 2026 financing plan and the Republic's strategy to diversify its funding sources and investor base.

Eugenio Symon, Capital Markets Coordinator at the Ministry of Finance, noted that "this issuance delivers on the financing plan announced in July and advances the diversification of the Treasury's funding sources. Adding the Swiss franc broadens the country's options for accessing international markets and supports prudent and responsible public debt management."

Entering the Swiss franc market adds a new currency to the Treasury's funding structure and opens an additional source of financing, complementary to the dollar and euro markets. It also establishes 5- and 10-year sovereign benchmarks in this currency, which may serve as a reference for other Chilean issuers active in that market.

The bookbuilding process drew 54 accounts for the 5-year bond and 37 for the 10-year bond. The transaction saw broad participation from Swiss investors, both in the number of accounts involved and in their share of the allocation, reflecting strong interest in Chile's sovereign credit. Demand came almost entirely from the Swiss market. By investor type, asset managers and banks, including private banks, led the order book, alongside significant participation from insurance companies in the 10-year tranche.

Víctor González, Head of the Public Debt Office, highlighted that "the composition of demand reflects the addition of a new group of institutional investors to the holder base of Chilean sovereign debt. The terms achieved in both tranches allow us to establish 5- and 10-year Swiss franc benchmarks, which will be relevant for the Republic's future transactions in this market."

Issuance details

• Swiss franc bond maturing October 14, 2031 (5 years): CHF 210 million, with a coupon and yield of 1.5275% (SARON mid-swap plus 75 basis points).

• Swiss franc bond maturing October 14, 2036 (10 years): CHF 170 million, with a coupon and yield of 1.865% (SARON mid-swap plus 95 basis points).

The Republic of Chile holds credit ratings of A2 (stable outlook) from Moody's, A (stable outlook) from S&P Global Ratings, and A- (stable outlook) from Fitch Ratings. The S&P and Fitch ratings were recently affirmed, on September 25 and September 18, respectively. The transaction was led by the Public Debt Office of the Ministry of Finance, with BNP Paribas and Zürcher Kantonalbank (ZKB) acting as joint lead managers, and Garrigues as local legal counsel.