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Thursday, January 17 de 2019

Ministry of Finance announces the 2019 issuance plan for Government Securities

  • The Ministry of Finance announces that in 2019 the Republic will issue Treasury Bonds for a total amount of up to US$8.7 billion approximately, of which up to US$7.2 billion will be local currency denominated bonds, and up to US$1.5 billion will be issued in foreign currency.
  • As has been the case in previous years, the local currency bonds will be issued through the Central Bank of Chile’s System (SOMA) (US$5.7 billion) and through a book-building process (US$1.5 billion).

The Ministry of Finance announces that, in 2019, the Republic will issue Treasury bonds for a total amount of up to US$8.7 billion, approximately. These issuances are consistent with the authorization granted by the 2019 Budget Law.

Regarding local currency denominated bonds, issuances in Chilean pesos and UF (an inflation linked unit) are planned for a total amount of up to US$7.2 billion. In line with the objective of fostering liquidity and market depth in the local fixed income market, the plan considers further strengthening of the benchmarks with maturity in 2023 and 2030, in pesos and UF, by tapping the securities created in 2018. At the same time, and in order to maintain a reference around 30 years in pesos and UF, two new bonds with maturity in 2050 will be created.

The amounts to be issued per bond (in CLP) are:

  • Peso denominated Bond with maturity in 2023, up to $555,000 million (approximately US$800 million. Reopening).
  • Peso denominated Bond with maturity in 2030, up to $975,000 million (approximately US$1.4 billion. Reopening).
  • Peso denominated Bond with maturity in 2050, up to $1,180,000 million (approximately US$1.7 billion. New Issuance).
  • UF denominated Bond with maturity in 2023, up to UF 21,400,000 (approximately US$850 million. Reopening).
  • UF denominated Bond with maturity in 2030, up to UF 27,700,000 (approximately US$1.1 billion. Reopening).
  • UF denominated Bond with maturity in 2050, up to UF 34,300,000 (approximately US$1.35 billion. New Issuance).

Thus, the program of local currency issuances totaling up to US$7.2 billion, consists of US$5.7 billion to be auctioned through the Central Bank’s System -entity that acts as Fiscal Agent– on the dates in the calendar below. This will also be available on the Web Site of the Ministry of Finance, in the “Public Debt Office” section (http://www.hacienda.cl/english/public-debt-office/central-bank-auctions/auction-dates.html).  

TOTAL 275.000 555.000 830.000 21.400 27.700 27.500
DatesPeso Denominated BondUF Denominated Bond
Millions of PesosThousands of UF

BTP-2023

BTP-2030 BTP-2050BTU-2023BTU-2030BTU-2050
jan-24-19 140.000 230.000 6.900 6.900
mar-13-19 140.000 7.100
mar-20-19 230.000 6.800
apr-17-19 240.000
apr-24-19 135.000 7.100
may-29-19 140.000 6.900
jul-24-19 135.000 7.000
aug-21-19 140.000 6.900 6.800
oct-16-19 130.000 7.200 7.000

Following up on the continued efforts of the Ministry of Finance to support the development of the local fixed income market, an issuance in local currency for a total amount of approximately US$1.5 billion is also considered to take place through a book-building process and will be informed in advance.

Finally, and subject to market conditions, we plan to issue during 2019 an amount of US$1.5 billion equivalent in foreign currency. The process will be duly informed before it is undertaken.

This schedule may change due to new market conditions and/or government’s financial needs. Any modification to this schedule will be publicly disclosed.

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