22 January 2009

Chile’s Bond Sale Creates Reference Point for Risk, Tagle Says

By Nathan Gill
     Jan. 22 (Bloomberg) -- Guillermo Tagle, vice president of Chile’s Capital Markets Consultative Council and executive director of Santiago-based IM Trust Corredores de Bolsa, comments on the country’s Jan. 8 decision to sell $1 billion of local currency bonds. Tagle spoke to reporters today in Santiago after a meeting with the South American country’s Finance Minister Andres Velasco.

On whether the sale of government bonds will help Chilean companies access international financing:
     “More than help them get access to financing, the fact that Chile’s government is selling bonds on the international market helps create risk finance measurements and cost-of-finance measurements.
     “What the state does with its debt sale abroad helps companies access the international market because it creates a good reference point to complement the number of observations that are in the capital markets to build prices.”