Chile Heard Awarding Mandate

Citi and JPMorgan are heard having won mandates for a new bond transaction from Chile, according to DCM bankers. It is not certain if any additional banks have also been named. Shops all over the street have been pitching the sovereign ever since it announced in April that it planned to tap the dollar markets for the first time since 2004, to help raise funds for earthquake reconstruction. A formal RFP was circulated last month. The sovereign is considering raising $500m through a debut peso-denominated global issue, as well as $1bn in 10-year dollars. Though it was expected to be able to come to the market as soon as this month, the sovereign is seen waiting out the current downturn in global markets.