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Finance Minister Details Stronger Tax Reform Strategy

CHILE
  • In an interview on Tuesday, finance minister Mario Marcel said Chile’s government will send its latest tax reform proposal to the Senate within three weeks and retains the option of insisting in congress next March as a backup plan. Marcel explained that the administration has a stronger strategy this time, as the plan not only focuses on taxation, but also areas including spending priorities, fostering growth and creating fiscal efficiencies. (BBG)
  • On Tuesday, Chile sold $1.15 billion of notes due in 2036 and $1.1 billion of bonds due 2054, yielding 123 and 148 basis points over US Treasuries respectively. Latest guidance on the Euro denominated new issue announced earlier today via Bloomberg is here:
  • Max. EU750m 11Y SLB Fixed (July 5, 2034) MS+135 Area -- may price today
      • IPT MS+155 area
      • Coupon: Annual, act/act ICMA
    • Issuer: Chile Government International Bond (CHILE), Settlement: July 5, 2023
    • Bookrunners: CA-CIB, HSBC (B&D), Santander, SCOTIA, SocGen
  • Chile also plans to exchange about €4.95 billion of its outstanding notes for newly issued euro-denominated notes due 2034, according to a statement.

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