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Stock impact report

Chile Bond Sale May Tempt Government to Break Issuance Plan Announced Just Three Weeks Ago [BNN Bloomberg (Canada)]

Banco Bilbao Vizcaya Argentaria S.A. (BBVA) 
US:NYSE Investor Relations: shareholdersandinvestors.bbva.com
Company Research Source: BNN Bloomberg
The South American nation priced $1.7 billion of notes due in 5 years at a spread of 85 basis points over similar US Treasuries, tightening from initial price talks of 120 basis points and below Chile's existing yield curve. The sale represented the entire dollar issuance targeted for the year. “Although it is not part of the plan, given the positive result, the Treasury could reconsider issuing some additional bonds in foreign currency this year,” said Samuel Carrasco, a senior economist at Credicorp Capital. The spread on the 5-year notes was similar to that on 2029 bonds from Saudi Arabia, which is rated two notches above Chile at Fitch Ratings and one notch at Moody's Investors Service. Moreover, demand for the new notes exceeded the amount on offer by 7.5 times. And all that in the context of a selloff in global markets in the first few weeks of this year. “Another liability management exercise of the front end of the curve may make sense, especially as rates drop on stron Show less Read more
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