Chile Heard Awarding Mandate

Chile is heard awarding a mandate to two banks for an international bond transaction, putting the sovereign one step closer to going to market. An official announcement has yet to be made, but HSBC and JPMorgan are thought to be favorites given they helped lead the sovereign’s last transaction in 2010 when it priced a $1.5bn 2-tranche USD and global CLP-denominated 10-year offering, rated Aa3/A/A+. Deutsche Bank may also be a contender as it has clinched several Chilean corporate mandates over the years. The sovereign has expressed interest in a benchmark transaction with the idea of raising up to $1.5bn in 2011.