Chile Sets $3bn Local Bond Program

Chile’s finance ministry plans to sell $3bn equivalent in domestic bonds during H1 2010. It will do 2 issues a month from January 20 through June 23, including 5-year peso-denominated bonds totaling $768m and some $2.23bn in inflation-indexed bonds with maturities of 5, 10, 20 and 30 years. The amounts suggest a continued ability to avoid more costly cross-border financing. Chile – which has not issued a sovereign dollar bond in international markets since 2004 – flirted with the idea of external debt last year. Ultimately, it was able to finance its budget and a $4bn equivalent economic stimulus plan through local bond sales and a stabilization fund. Chile has not disclosed its local issuance plan for H2.