Obligation Chili 5.5% ( US168863AU21 ) en CLP

Chili

100 % ▼

Chili

US168863AU21 ( en CLP )

5.5% par an ( paiement semestriel )

04/08/2020 - Obligation échue

Prospectus brochure de l'obligation Chile US168863AU21 en CLP 5.5%, échue

50 000 000 CLP

380 430 500 000 CLP

168863AU2

N/A

Le Chili est un pays d'Amérique du Sud s'étendant sur une étroite bande de terre le long de la côte ouest du continent, connu pour ses paysages variés, allant du désert d'Atacama à la Patagonie glaciaire, et sa riche histoire et culture.

L'Obligation émise par Chili ( Chili ) , en CLP, avec le code ISIN US168863AU21, paye un coupon de 5.5% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 04/08/2020

Final Prospectus Supplement
http://www.sec.gov/Archives/edgar/data/19957/000119312510172109/d...
424B2 1 d424b2.htm FINAL PROSPECTUS SUPPLEMENT
Table of Contents
Filed Pursuant to Rule 424(b)(2)
Registration No. 333-167534
Prospectus Supplement
To Prospectus Dated July 22, 2010
Payable in U.S. dollars
Issue price: 100.00%
Interest payable on February 5 and August 5 of each year
The CLP-Denominated 5.50% Notes due 2020 (which we refer to as the notes) will mature on August 5, 2020. The notes will
bear interest at a rate of 5.50% per year. Interest on the notes is payable on February 5 and August 5 of each year, beginning February
5, 2011. Principal and interest will be translated into, and payment of principal and interest will be made in, U.S. dollars. The notes
are not redeemable prior to maturity.
The notes will contain provisions regarding acceleration and future modifications to their terms. Under these provisions, which
are described in this prospectus supplement beginning on page S-23, Chile may amend the payment provisions and certain other terms
of the notes with the consent of the holders of 75% of the aggregate principal amount of the outstanding notes.
The notes will be direct, general, unconditional, unsecured and unsubordinated external indebtedness of Chile and will be
backed by the full faith and credit of Chile. The notes will rank equal in right of payment with all of Chile's present and future
unsecured and unsubordinated external indebtedness.
Application has been made to list the notes on the official list of the Luxembourg Stock Exchange and to admit the notes for
trading on the Euro MTF market.
The underwriters expect to deliver the notes to purchasers on or about August 5, 2010.
Investing in the notes involves risks, see, especially, "Investment Considerations," on page S-7 of this prospectus supplement.
Neither the Securities and Exchange Commission nor any state securities commission or regulatory body has approved or
disapproved of these securities or determined that this prospectus supplement or the accompanying prospectus is truthful or
complete. Any representation to the contrary is a criminal offense.

Public Offering
Underwriting
Proceeds to Chile

Price(1)(2)

Discount

(before expenses)
Per Note

100.000%
0.100%
99.900%
Per Note in U.S. Dollars

US$95,520
US$95.520
US$95,424
Total for notes

US$520,192,951
US$520,193
US$519,672,758
(1) You will make the payment of the public offering price in U.S. dollars based on an exchange rate for the conversion of Chilean
pesos into U.S. dollars of Ps. 523.45 per US$1.00. The per bond denomination is Ps. 50,000,000 and integral multiples of Ps.
500,000 in excess thereof.
(2) You will also pay additional accrued interest, if any, from August 5, 2010 if settlement occurs after that date.
Joint lead managers and bookrunners

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We are responsible for the information contained in this prospectus supplement and the accompanying prospectus and in
any related free-writing prospectus we prepare or authorize. We have not authorized anyone to give you any other
information, and we take no responsibility for any other information that others may give you.
TABLE OF CONTENTS

Prospectus Supplement
About This Prospectus Supplement

S-3
Certain Defined Terms and Conventions

S-3
Summary of the Offering

S-5
Investment Considerations

S-7
Recent Developments

S-8
Use of Proceeds

S-20
Description of the Notes

S-20
United States Federal Taxation

S-25
Underwriting

S-27
Validity of the Notes

S-30
General Information

S-30
Prospectus

About this Prospectus

1
Certain Defined Terms and Conventions

2
Forward-Looking Statements

4
Data Dissemination

4
Use of Proceeds

4
Summary

5
Republic of Chile

7
The Economy

15
Balance of Payments and Foreign Trade

43
Monetary and Financial System

52
Public Sector Finances

74
Public Sector Debt

91
Description of the Securities

100
Taxation

114
Plan of Distribution

117
Official Statements

119
Validity of the Securities

119
Authorized Representative

119
General Information

120
Tables and Supplemental Information

121

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ABOUT THIS PROSPECTUS SUPPLEMENT
This prospectus supplement supplements the accompanying prospectus dated July 22, 2010, relating to Chile's debt securities
and warrants. If the information in this prospectus supplement differs from the information contained in the accompanying prospectus,
you should rely on the updated information in this prospectus supplement.
You should read this prospectus supplement along with the accompanying prospectus. Both documents contain information you
should consider when making your investment decision. You should rely only on the information provided in this prospectus
supplement and the accompanying prospectus. Chile has not authorized anyone else to provide you with different information. Chile
and the underwriters are offering to sell the notes and seeking offers to buy the notes only in jurisdictions where it is lawful to do so.
The information contained in this prospectus supplement and the accompanying prospectus is current only as of their respective dates.
Chile is furnishing this prospectus supplement and the accompanying prospectus solely for use by prospective investors in
connection with their consideration of a purchase of the notes. Chile confirms that:

· the information contained in this prospectus supplement and the accompanying prospectus is true and correct in all material

respects and is not misleading as of its date;

· it has not omitted facts, the omission of which makes this prospectus supplement and the accompanying prospectus as a

whole misleading; and

· it accepts responsibility for the information it has provided in this prospectus supplement and the accompanying

prospectus.
CERTAIN DEFINED TERMS AND CONVENTIONS
Defined Terms
Terms used but not defined in this prospectus supplement have the meanings ascribed to them in the accompanying prospectus
dated July 22, 2010.
Currency of Presentation
Unless otherwise stated, Chile has converted historical amounts translated into U.S. dollars ("U.S. dollars", "dollars" or
"US$") or pesos ("pesos," "Chilean pesos" and "Ps.") at historical annual average exchange rates. Translations of pesos to dollars
have been made for the convenience of the reader only and should not be construed as a representation that the amounts in question
have been, could have been or could be converted into dollars at any particular rate or at all.
Chilean Peso Information
For the purpose of calculating payments to be made in respect of the notes, all references to "Ps." are to Chilean pesos.
Payments of principal and interest will be translated from Chilean pesos into U.S. dollars based upon the average Dólar
Observado rate. See "Description of the Notes".
On July 29, 2010, the Dólar Observado rate was Ps. 522.72 per US$1.00.

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The following table shows the high, low, average and period-end peso/U.S. dollar exchange rates for each year from 2005 to
2009 and the first six months of 2010.
Exchange Rates
(pesos per US$)

High
Low
Average(1)
Period End
2005

592.8
509.7
559.8
514.2
2006

549.6
511.4
530.3
534.4
2007

548.7
493.1
522.5
495.8
2008

676.8
431.2
522.5
629.1
2009

643.9
491.1
559.6
506.4
2010

January

531.75
489.47
500.66
531.75
February

546.18
523.10
532.56
529.69
March

533.87
508.66
523.16
526.29
April

527.38
514.91
520.62
520.99
May

549.17
517.23
533.21
529.23
June

548.16
530.32
536.67
543.09
July (through July 29)

547.19
518.36
532.19
522.72
(1) Represents the average of average monthly rates for the years indicated, and the average of daily rates for the months

indicated.

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SUMMARY OF THE OFFERING
This summary highlights information contained elsewhere in this prospectus supplement and the accompanying prospectus.
It is not complete and may not contain all the information that you should consider before investing in the notes. You should read
the entire prospectus supplement and prospectus carefully.

The Republic of Chile.
Issuer

Ps. 272,295,000,000
Aggregate Principal Amount

100.00% plus accrued interest, if any from August 5, 2010. The issue price will be
Issue Price
payable in U.S. dollars based on an exchange rate of Chilean pesos into U.S.
dollars of Ps. 523.45 per U.S.$1.00.

August 5, 2020.
Maturity Date

Chile will issue the notes in the form of one or more registered global securities
Form of Securities
without coupons.

Chile will issue the notes in denominations of Ps. 50,000,000 and integral
Denominations
multiples of Ps. 500,000 in excess thereof.

The notes will bear interest from August 5, 2010 at the rate of 5.50% per year,
Interest
payable in U.S. dollars as calculated as described below. Chile will pay interest
semi-annually, on February 5 and August 5 of each year, commencing on
February 5, 2011.

Chile may not redeem the notes before the maturity date. At the maturity date, Chile
Redemption
will redeem the notes at par.

All amounts due in respect of principal and interest will be paid in U.S. dollars,
Conversion of the payment amounts
calculated by the Calculation Agent by exchanging the Chilean peso amounts into
U.S. dollars at the average Dólar Observado rate on the applicable Rate
Calculation Date (as defined below).

The notes will be direct, general, unconditional, unsecured and unsubordinated
Status
external indebtedness of Chile and will be backed by the full faith and credit of
Chile. The notes will rank equal in right of payment with all of Chile's present and
future unsecured and unsubordinated external indebtedness.

Chile will make all payments on the notes without withholding or deducting any
Withholding Tax and Additional Amounts
taxes imposed by Chile or any political subdivision thereof or taxing authority
therein, subject to certain specified exceptions. For more information, see
"Description of the Securities--Debt Securities--Additional Amounts" on page
102 of the accompanying prospectus.

For a general summary of United States federal income tax consequences resulting
Taxation
from the purchase, ownership and disposition of a note, holders should refer to the
discussions set forth under the headings "United States Federal Taxation" below
and "Taxation--United States Federal Taxation" in the accompanying prospectus.

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Further Issues
Chile may from time to time, without your consent, increase the size of the issue of
the notes, or issue additional debt securities that may be consolidated and form a
single series with the outstanding notes.

Listing
Application has been made to list the notes on the official list of the Luxembourg
Stock Exchange and to admit the notes for trading on the Euro MTF market.

Governing Law
New York.

Calculation Agent
The Bank of New York Mellon.

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INVESTMENT CONSIDERATIONS
Risks Relating to Foreign Currency Securities
This prospectus supplement and the accompanying prospectus do not describe all the risks of an investment in securities
denominated in currencies other than U.S. dollars. You should consult your own financial and legal advisors about the risks of an
investment in the notes. If you are unsophisticated with respect to foreign currency transactions, these notes are not an appropriate
investment for you.
The information in this section is directed to investors who are U.S. residents and does not address risks for investors who are
not U.S. residents. We disclaim any responsibility to advise prospective purchasers who are residents of countries other than the
United States with respect to any matters that may affect the purchase, holding or receipt of payments of the notes. If you are not a U.S.
resident, you should consult your own financial and legal advisors.
Currency exchange rates can be volatile and unpredictable. If the Chilean peso depreciates against the U.S. dollar, the effective
yield on the notes will decrease below the interest rate on the notes, and the amount payable at maturity may be less than your
investment, resulting in a loss to you. Depreciation of the Chilean peso against the U.S. dollar may also adversely affect the market
value of the notes.
Rates of exchange between the U.S. dollar and the Chilean peso have varied significantly over time. Historical peso/U.S. dollar
exchange rates are presented on page S-4 of this prospectus Supplement. However, historical trends do not necessarily indicate future
fluctuations in rates, and should not be relied upon as indicative of future trends.
Chile presently has a floating exchange rate. The Central Bank, from time to time, has intervened in the foreign exchange market
when it considers the currency to be moving too far from its fundamentals and equilibrium value, which could result in costly
reversions. These interventions have taken the form of transparent measures and have included clearly delineated periods and
amounts involved, as well as the explanations for these actions. Similar interventions in the future could affect the value of the notes,
as well as the yield on the notes and the amount payable to you at maturity.
Even in the absence of Central Bank action directly affecting currency exchange rates, political or economic developments in
Chile or elsewhere could lead to significant and sudden changes in the exchange rate between the peso and the U.S. dollar.
Exchange controls could affect the peso/U.S. dollar exchange rate and the amount payable on the notes. Chile has not imposed
capital controls on outflows for nearly 30 years or on inflows for over 10 years. However, under certain circumstances, the Central
Bank may impose exchange controls, as permitted by law. Applicable law requires that such controls may only be imposed when
necessary for the stability of the currency or the financing of the balance of payments. Exchange controls must be approved by the
majority of the Central Bank counselors in office, and have to last for a specified period of time not exceeding one year (renewable
only by another agreement of the majority of the counselors then in office). The Central Bank's exchange controls decisions may be
vetoed by the Minister of Finance, whose veto may only be overruled by unanimous decision of the Central Bank Counselors.

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RECENT DEVELOPMENTS
The information included in this section supplements the information about Chile corresponding to the headings below that
is contained in the accompanying prospectus dated July 22, 2010. To the extent that the information included in this section
differs from the information set forth in the accompanying prospectus, you should rely on the information in this section.
Selected Financial Information(1)

As of March 31,

2009

2010(6)
THE ECONOMY

Gross Domestic Product (GDP)(2)

35,189
46,579
Real GDP (in billions of pesos)(3)

15,751
15,916
% Change respect the same quarter of previous year

(2.1)%
1.0%
Consumer price index (quarterly rate of change)

(0.7)%
0.9%
Wholesale price index (quarterly rate of change)

(7.8)%
1.6%
Unemployment rate (quarterly average)

9.2%
9.0%
Balance of payments:

Trade balance

2,622
4,679
Current account

889
1,523
Financial and capital account (including change in reserves)

(17)
(428)
Errors and omissions

(872)
(1,095)
Central Bank net international reserves (period-end)

23,382
25,631
Number of months of import coverage

2.6
2.2
PUBLIC FINANCE

Central government revenue

7,376
10,224
% of GDP(4)

21.0%
21.9%
Central government expenditure

8,406
10,305
% of GDP(4)

23.9%
22.1%
Central government surplus/(deficit)

(1,030)
(81)
% of GDP(4)

(2.9)%
(0.2)%
PUBLIC DEBT

Central government external debt

2,909
2,507
Central government external debt/GDP(5)

1.8%
1.3%

(1)
In millions of U.S. dollars, except as otherwise indicated.

(2)
GDP in U.S. dollars calculated by translating the nominal GDP in pesos at the average exchange rate of each period.

(3)
Calculated using constant 2003 pesos.

(4)
Calculated on the basis of corresponding first quarter GDP.
(5)
Calculated on the basis of full year corresponding GDP for 2009 and estimated full year corresponding GDP for

2010.

(6)
Preliminary.
Source: Central Bank, Budget Office and National Statistics Institute.

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Republic of Chile
Earthquake and Tsunami of February 27, 2010
On July 14, 2010, the Chilean Congress approved the government's post-earthquake reconstruction finance bill, which is
currently pending enactment by the President.
The Economy
Recent Macroeconomic Performance
In the first quarter of 2010, domestic output and demand grew at an annual rate of 1.0% and 11.1%, respectively, compared to a
contraction of 2.1% and 6.6%, respectively, during the first quarter of 2009. On a quarterly basis, output decreased 1.5% and demand
rose 4.2% compared to the fourth quarter of 2009. This contraction in output was largely caused by the 2010 earthquake and tsunami's
effect on industrial output, which had a greater adverse effect than initially estimated. Demand rose largely due to increases in durable
goods orders and consumer and capital goods imports, reflecting a significant increase in retail consumption.
In the first quarter of 2010, total imports grew by 28.6% compared to the same period in 2009 largely due to their substitution
for local production, which declined as a result of the February 2010 earthquake and tsunami.
The following table sets forth information regarding Chile's recent macroeconomic performance for the periods indicated:
Chilean Macroeconomic Performance

Domestic
Current Account
GDP Growth
Demand Growth
First Quarter

(in millions of US$)
(in %)(2)

(in %)(2)

2009

889.3
(2.1)%
(6.6)%
2010(1)

1,522.9
1.0%
11.1%

(1)
Preliminary.

(2)
Compared to the first quarter of the previous year.
Source: Central Bank.
Gross Domestic Product
In the first quarter 2010, GDP rose by 1.0%, compared to the same period of 2009, primarily due to an 11.1% increase in
aggregate domestic demand and a 9.3% expansion in gross fixed capital investment.

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The following tables set forth GDP and expenditure for the periods indicated:
GDP and Expenditure at current prices
(in billions of pesos)

First Quarter
First Quarter

2009

2010(1)

% Change
GDP

21,363
24,174
13.2%

Aggregate Domestic Demand

19,831
21,874
10.3%

Gross Fixed Capital Investment

4,749
5,002
5.3%
Change in Inventories

(527)
168
*
Total Consumption

15,609
16,704
7.0%
Private Consumption

13,097
13,912
6.2%
Government Consumption

2,512
2,792
11.1%
Total Exports

8,466
9,718
14.8%

Exports of Goods

6,966
8,402
20.6%
Exports of Services

1,500
1,316
(12.3)%
Total Imports

6,933
7,417
7.0%

Imports of Goods

5,807
6,375
9.8%
Imports of Services

1,126
1,042
(7.5)%
Net Exports

1,533
2,301
50.1%

*
Not meaningful.

(1)
Preliminary.
Source: Central Bank.
GDP and Expenditure at constant prices
(in billions of constant 2003 pesos)

First Quarter
First Quarter

2009

2010(1)

% Change
GDP

15,751
15,916
1.0%

Aggregate Domestic Demand

15,824
17,577
11.1%

Gross Fixed Capital Investment

3,833
4,191
9.3%
Change in Inventories

(433)
154
*
Total Consumption

12,424
13,232
6.5%
Private Consumption

10,573
11,371
7.5%
Government Consumption

1,851
1,861
0.5%
Total Exports

6,409
6,023
(6.0)%

Exports of Goods

5,160
4,840
(6.2)%
Exports of Services

1,249
1,183
(5.3)%
Total Imports

6,482
7,683
18.5%

Imports of Goods

5,410
6,603
22.0%
Imports of Services

1,072
1,080
0.8%
Net Exports

(73)
(1,661)
2,175.3%

*
Not meaningful.

(1)
Preliminary.
Source: Central Bank.

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