During 2025 and in line with the authorizations contained in the Budget Law, the Ministry of Finance estimates Treasury bonds issuances by a maximum amount equivalent to US$16.0 billion. This amount includes the financing of debt amortizations for approximately US$5.0 million, so the net debt would correspond to approximately US$11.0 billion. 

The plan contemplates, as in previous years, the issuance of bonds in local and foreign currency, including the operations carried out last Tuesday in dollars and euros. In line with the objective of gradually reducing the composition of debt in foreign currency - which experienced an increase during the pandemic years, the strategy considers the issuance of greater amounts in local currency. This will translate into bond issuances for around 70% in local currency and 30% in foreign currency. It is estimated to end the year with a debt stock of 67% in local currency and 33% in foreign currency.

In addition to this, the plan considers the  is the authorization for hedging operations, contained in the 2025 Budget Law, which would allow the continuation of the plan initiated in 2023, consisting of the reduction of exchange rate exposure, through the hedge of foreign currency denominated debt towards local currency.

In aggregate terms, regarding the local currency issuances, the program contemplates issuances of Bills with a maturity lower than 1 year, by an amount of up to US$5.0 billion, approximately. In this regard, it is worth to highlighy that, based on the authorization contained in the Budget Law, the obligations issued in 2025 that are amortized in the same year, will not be considered for the use of debt margin authorizations.

Of the rest of the local debt, which does use debt margin, approximately 55% would be issued in pesos and 45% in inflation linked instruments. A portion of this amount could be issued in issue through a book-building process.

Finally, the 2025 issuance program will seek, as has been done in recent years, to reinforce specific points of the curves in pesos and UF with the objective of defining and strengthening benchmark, providing the local market with better references and thus encouraging liquidity in both currencies.

The auction calendar for the first quarter, to be executed through the SOMA system  of the Central Bank, will be announced once the corresponding administrative procedures are completed.

Debt with ESG characteristics

Following the commitment to ESG (Environmental, Social and Governance) topics, the Treasury will continue to reinforce its issuance with green and/or social characteristics, which may include emissions associated with the use of resources, or SLB issuances, such as those executed in in 2022 and 2023.

It is projected that, by the end of 2025, the ESG instruments will represent approximately 40% of the total debt stock.

Exchange Operations

In line with the strategy followed during 2024, it is planned to continue with the exchange and repurchase operations in the local market, starting in the second quarter of 2025. 

Specifically, this program will seek to offer benchmark bonds, in order to support the liquidity and depth of the market, in exchange for instruments that are no longer a reference; managing as well upcoming maturities, with  focus on 2026 maturities.

All this information is subject to the respective legal procedures and authorizations. Likewise, they could be modified in the event of changes in market conditions and/or in the Government's financing needs, which will be reported in a timely manner.