Chile´s “earthquake” bonds will have great demand and pay for the reconstruction.
Chile 8.8 Earthquake caused great damage, but international investors will finance reconstruction.
Chile will probably obtain the cheapest funding of any Latin American country when it sells dollar bonds for the first time in six years to help pay for reconstruction after February’s earthquake.
Chile, whose debt is the highest rated in Latin America, plans to sell 10-year dollar bonds in coming months, according to a government official who couldn’t be identified because final terms aren’t set. Chile will pay about 15 basis points less than Brazil, whose 8.875 percent bonds due in 2019 yield about 103.5 basis points over U.S. Treasuries, according to Enrique Alvarez, an analyst at IDEAglobal Inc.
“There’s a complete scarcity of Chilean bonds, so I’m sure there’s going to be very large demand,” New York-based Alvarez said. “They’ll have absolutely no…READ MORE HERE.