SQM (NYSE: SQM) completes 10,000,000 UF Series S hybrid bond to 2058

Rhea-AI Filing Summary

Sociedad Química y Minera de Chile (SQM) has issued Series S local hybrid bonds in Chile for a total of 10,000,000 UF, described as approximately US$430 million. These bonds are part of a 35-year bond program registered with the Chilean Commission for the Financial Market.

The Series S Bonds mature on February 15, 2058 and carry a fixed annual interest rate of 4% on principal expressed in UF, starting November 15, 2025. The effective placement rate was 3.84%, which reflects a 1.52% spread over a UF-denominated Central Bank of Chile bond of equivalent term.

SQM states that the proceeds from this issuance will be used for general corporate purposes and to refinance existing debt, which means the funds can both support ongoing operations and replace older borrowing.

Insights

Credit and capital structure analyst

SQM raises long-dated hybrid debt in Chile to refinance liabilities and fund general needs.

SQM has completed a local issuance of Series S hybrid bonds for 10,000,000 UF, described as approximately US$430 million. The bonds mature on February 15, 2058, giving the company very long-term funding. A fixed 4% annual interest rate on UF-linked principal provides predictable nominal coupons while tying real value to Chile’s inflation index.

The effective placement rate of 3.84%, including a 1.52% spread over an equivalent-term Central Bank UF bond, indicates pricing above sovereign benchmarks, as is typical for corporate issuers. Using proceeds for general corporate purposes and to refinance existing debt suggests a mix of balance-sheet management and ongoing funding rather than a single specific project.

Because this is a financing transaction within an existing 35-year bond program registered under No. 1239, its impact depends on how the new hybrid bonds compare in cost and tenor to the debt being refinanced. Future company disclosures may clarify resulting leverage, interest expense, and maturity profile changes.

SQM ANNOUNCES ISSUANCE OF LOCAL HYBRID BOND Santiago, Chile – D ecember 4 , 20 25 - Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM -B, SQM -A) announced today that it has completed the placement of Series S Bonds in the Chilean general securities market for a total amount of UF 10,000,000 (approximately US$430 millio n). The placement was authorized on November 25, 2025, and is part of a 35 -year bond program registered in the Securities Registry of the Commission for the Financial Market (CMF) under No. 1239. The Series S Bonds (i ) mature on February 15, 2058; (ii) will accrue, on the outstanding principal expressed in UF (unidades de fomento ), a fixed annual interest rate of 4%, starting November 15, 2025; and (iii) the effective placement rate was 3.84%, which includes a local placement spread over the Central Bank of Chile’s UF -denominated bond of equivalent term of 1.52% . Proceeds from the placement will be used for general corporate purposes and to refinance existing debt.

About SQM SQM is a global company that is listed on the New York Stock Exchange and the Santiago Stock Exchange (NYSE: SQM; Santiago Stock Exchange: SQM -B, SQM -A). SQM develops and produces diverse products for several industries essential for human progress, such a s health, nutrition, renewable energy and technology through innovation and technological development. We aim to maintain our leading world position in the lithium, potassium nitrate, and iodine markets. For further information, contact: Gerardo Illanes: gerardo.illanes@sqm.com Isabel Bendeck: isabel.bendeck@sqm.com Megan Suitor: megan.suitor@sqm.com Media contacts: Lithium Division: Ignacia Lopez / ignacia.lopez@sqm.com Iodine - Plant Nutrition Division: Carolina Guzman / carolina.guzman@sqm.com International Lithium Divicion: Diana WearingSmith / diana.wearingsmith@sqm.com

FAQ

What did SQM (SQM) announce regarding its new bond issuance?

SQM announced it has completed the placement of Series S Bonds in the Chilean general securities market for a total amount of 10,000,000 UF, described as approximately US$430 million.

What are the key terms of SQMs Series S Bonds?

The Series S Bonds mature on February 15, 2058 and carry a fixed annual interest rate of 4% on outstanding principal expressed in UF, starting November 15, 2025, with an effective placement rate of 3.84% including a 1.52% spread over a comparable Central Bank UF bond.

How will SQM use the proceeds from the Series S Bond issuance?

SQM states that proceeds from the Series S Bond placement will be used for general corporate purposes and to refinance existing debt.

What framework does the Series S Bond belong to in SQMs funding program?

The Series S Bonds are part of a 35-year bond program registered in the Securities Registry of the Commission for the Financial Market under No. 1239.

On which exchanges is SQM listed and what markets does it serve?

SQM is listed on the New York Stock Exchange and the Santiago Stock Exchange, and develops products for industries such as health, nutrition, renewable energy and technology, with leading positions in lithium, potassium nitrate and iodine.