By 2018, Chilean corporations issued 60 bonds for a total of $ 3.3 billion, a 19 percent increase over last year.
Chilean companies are working full-time to issue a new debt before the Central Bank of Chile and the US Central Bank reach the expected rate increase in the last month of the year.
Possible new issues would ultimately have the sealing of "good years" for the Chilean market for placements. By 2018, Chilean corporations issued 60 bonds in the total amount of $ 3.3 billion, a 19 percent increase over the $ 2.8 billion reported by 51 operations in 2017, according to the data collected. on the stock exchange Santiago.
"This year, there were more appetites because publishers are quick to borrow at rates that are still low," says Joaquin Aguirre, Tanner Strategy Manager, adding that the year 2017 was marked by "strong economic and political uncertainty, to a certain extent halted good dynamics "of the market.
Latam Airlines, Parque Arauco and Entel would be among bond issuers. According to information provided by Bloomberg, Chilean companies have asked for up to US $ 6 billion in the coming months in the debt market.
So far, most of the issues in Unidades de Fomento, the accounting measure in Chile has been indexed on inflation. So far, in the last quarter of the year, nine corporate bond bonds have totaled EUR 699 billion, almost twice as high as in the same period of 2017 in the same number of operations according to data from the Trade Market in Santiago.
In September, the Central Bank of Chile announced that it will start withdrawing the monetary stimulus, as inflation is below the target and in terms of economic dynamics. The issuer fulfilled its promise by increasing its benchmark interest rate to 2.75% in October. However, the market is divided into whether the board will maintain or increase the rate at the fourth meeting on December 4th.
Interest rate swaps indicate that the market places the Central Bank using at least three additional increments from 25 basis points to 3.5%. President of the Federal Republic of Germany Jerome Powell yesterday saved his expectations of a possible break in his cash adjustment cycle in 2019, after this year he increased 75 basis points. On 19 December, the issuing body would meet again at its meeting.
With rates still low, investors continue to buy everything that comes on the market. "Investors continue to look for a good return, but we also see interesting items and a level of expansion that is well below historical," says Borge Jorge García, a wealth management assistant.