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Chile’s plan in the 2022 debt market: issue bonds for up to US$20 billion

RIO DE JANEIRO, BRAZIL – Amid the greatest spending pressures that Chile has faced following the social outbreak and pandemic, the Ministry of Finance announced this morning that the Treasury estimates to place Treasury bonds during 2022, for up to an amount equivalent to US$20 billion, in accordance with the Budget Law.

In a press release, Teatinos 120 said that this amount includes new indebtedness for an amount of around US$16.6 billion and the amount required to finance debt amortizations for approximately US$3.5 billion.

At the same time, it is reported that the equivalent of US$2 billion of the resources obtained from bond placements in foreign currencies will be transferred to the Economic and Social Stabilization Fund.

With this, the Central Government's debt at the end of 2022 would be denominated 68% in local currency and 32% in foreign currency, from a composition of 65% in local currency and 35% in foreign currency at the end of 2021.
With this, the Central Government’s debt at the end of 2022 would be denominated 68% in local currency and 32% in foreign currency, from a composition of 65% in local currency and 35% in foreign currency at the end of 2021. (Photo: internet reproduction)

“As has been done in recent years, the 2022 placement plan contemplates the issuance of Treasury bonds in local and foreign currency. Of the total amount to be issued, it is estimated that US$14 billion would be in local currency and US$6 billion in foreign currencies,” the Treasury said in the document.

With this, the Central Government’s debt at the end of 2022 would be denominated 68% in local currency and 32% in foreign currency, from a composition of 65% in local currency and 35% in foreign currency at the end of 2021.

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