#Exchange Offer #Chile #Santiago #Euro Notes

Chile's Euro-Denominated Exchange Offer: An Overview

On July 2, 2025, the Republic of Chile announced the successful results of its exchange offer for Euro-denominated notes. This initiative, which first came to light on June 24, 2025, aimed to streamline and enhance the country's financial obligations through strategic restructuring of its existing debt.

Details of the Exchange Offer

The exchange offer, referred to as the Invitation, enabled holders of specific Euro-denominated notes, known as the Eligible Notes, to tender these for newly issued notes that carry a fixed interest rate of 3.800% and are due in 2035. This exchange is crucial for optimizing Chile's debt profile and providing a clearer financial pathway for the government.

Accepted Notes and Remaining Principal Balances

The invitation was designed to entice holders of certain Eligible Notes listed in the announcement. The results showed that all validly tendered Eligible Notes were accepted, ensuring a smooth transition to the new notes. Here are the details:

Financial Implications

Holders who participated in the exchange will receive new notes in equal principal value as their tendered notes. Specifically, for each €1,000 of Eligible Notes accepted, holders will be issued new notes with a principal amount equal to €1,000, adjusted by the relevantExchange Ratios. Notably, the total principal amount for the new notes issued as part of this offer is approximately €111,014,928.

The New Notes will not only provide a consolidated debt for the Republic of Chile but will also be fully fungible with those offered for cash on June 24, 2025. This consolidation simplifies management of the national debt.

Timeline and Next Steps

The exchange process initiated on June 24, 2025, and closed on July 1, 2025, at 5:00 p.m. CET. Settlement for the offer is slated for July 7, 2025. Important to note, any potential delays beyond the expected date won’t alter the principal amount of new notes; however, they may trigger adjustments to the Exchange Ratios due to accrued interest, ensuring fairness in the transaction.

Interest Accumulation Details

Chile's approach to interest reflects a careful planning strategy. Any accrued but unpaid interest up to the settlement date will not require separate cash payments, simplifying the transaction for both parties. This streamlined approach demonstrates Chile's commitment to maintaining robust financial stewardship while enhancing its credit profile.

The Invitation and Regulatory Compliance

The invitation was conducted under a prospectus supplement filed with the Securities and Exchange Commission (SEC). It’s important to recognize that this announcement does not constitute an offer, nor a solicitation, to exchange or tender any securities outside the parameters of the necessary legal documentation. Interested parties should familiarize themselves with any legal restrictions tied to the distribution of offer materials in different jurisdictions.

For any inquiries or the need for documents concerning this offer, the Information and Depositary Agent, Global Bondholder Services Corporation, is the primary contact. They can be reached through their New York office or their official website for any requests related to the offer.

Concluding Insights

In summary, the successful outcome of Chile's Euro-denominated exchange offer marks a pivotal step in managing the country's debt responsibilities. The streamlined issuance of new notes is expected to enhance financial flexibility while assuring creditors of the government's commitment to fiscal responsibility. This event underscores Chile's proactive approach to public finance and its ongoing strategy to strengthen its economic foundations for the coming years.