CHILE – MoF presents 4Q25 local currency issuance plan.

 

2025/09/29 | Andrés Pérez M., Vittorio Peretti, Andrea Tellechea & Ignacio Martínez

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The MoF published the 4Q25 gross local currency issuance plan through the Central Bank’s auction platform totaling USD3.7 billion, beginning on October 1 and running through December 4.  The calendar is available here. 

 

The 2025 issuance plan was revised up to USD16.7 billion, from an originally announced USD16 billion. The 2025 Budget Bill allows for the MoF to incur additional gross debt for USD17.5 billion this year. We expect this flow debt limit to be fully used between debt issuance and loans from multilaterals.  

 

No surprises in terms of maturities. As expected, the MoF will continue to raise a sizable funding share in short term nominal notes maturing in 2026 (July, August, October), along with longer tenor nominal and inflation-linked instruments. Notes should be easily absorbed by banks, while longer maturities should be demanded by pension funds. Exchange and buybacks of local currency instruments, focused on bonds maturing in 2026 and non-benchmark maturities, were also announced. 

 

No additional foreign currency issuances are expected this year. The MoF already issued roughly USD4.8 billion, 30% of the original USD16 billion plan, in three separate dollar and euro-denominated issuances. As a result, dollar sales through year end should, on average, reach USD500 million per month, in line with dollar-denominated mining revenue; see our note on the topic here. 

 

No book-building. Local currency book-building issuances are not expected in 4Q25 either and were absent entirely in this year’s government financing strategy.

 

Our take: Financing needs remain sizable. Even though revenues are improving and this year's nominal fiscal deficit should reach close to 2% of GDP (~USD7 billion), total gross financing needs remain far greater due to amortizations and below-the-line items, slowing public debt stabilization.  

 

The MoF and Budget Office are scheduled to present the 2026 budget to Congress this week, with gross financing needs projected to remain at a similar level as 2025 (or slightly below) despite a narrowing of the nominal fiscal deficit, again due to sizable below-the-line items. The presidential campaign has heated up prior to the budget bill on claims of fiscal debts to construction companies building social housing.

 

The MoF's 2026 gross financing plan should be released early next year. August's budget execution data will be published by the Budget Office this week, along with the updated Public Finance Report.