Since 2009, Banco Santander Chile has issued more than $ 6.000MM in different markets and currencies, always taking advantage of opportunities that have translated into savings in cost of funds.
Santiago, January 16, 2014 -. After a two-day roadshow in different cities of Switzerland, Banco Santander Chile has issued a new bond today in that country. The operation is for a total amount of 300MM Swiss francs (about US$ 330 million) at a price of CHF Mid swap +68 bps for a 3.5 years term. This translates into a cost of UF +2.87% (equivalent to BCU +93 bps, significantly lower than the cost of local funding for that term). This transaction isthe largest single-tranche operation done by any Latin American issuer in history..
The transaction was announced in Zurich at 8:00 am local time, with a minimum amount of CHF 200MM. The order book was heavily oversubscribed, with demand anchored by several Swiss banks, investment funds, private banks and other investment managers, which endorsed the substantial increase in the amount placed. This time, the underwriters were UBS and BNP Paribas banks.
"The very favorable reception of this bond in the Swiss market, reflects once more the good perception that foreign investors have of Chilean risk, the local banks and in particular of Banco Santander Chile. It is unusual to see issuances of this size in this market," said Pedro Murua, Structured Finance Manager of Banco Santander Chile.
This new transaction reaffirms Banco Santander Chile as the main Chilean issuer in Switzerland. It should be noted that Banco Santander Chile was the first Chilean issuer to open this market in 2010 when it placed its inaugural issuance of CHF 300 MM divided into two tranches of 3 and 5 years. In 2013 the Bank made two more transactions in March and September for a total of CHF 300 MM.
Since 2009 Banco Santander Chile has issued over $ 6,000 MM in different markets and currencies, always taking advantage of opportunities that have translated into savings in cost of funds.
About Banco Santander Chile
As of September 30, 2013, Banco Santander Chile (Bsantander, BSAC) is the largest bank in Chile in terms of total assets (U.S. $41.5 billion) and equity (($ 4.5 billion). The bank has 488 branches, 1,915 ATMs and 3.4 million clients. Santander Chile also has one of the highest risk ratings in the region with an A+ by Fitch, A by Standard and Poor`s and Aa3 by Moody`s. The Bank has a core capital ratio of 10.4%. Banco Santander Chile trades on the Santiago Stock Exchange (Bsantander) and in the New York Stock Exchange (BSAC). The largest shareholder of Banco Santander Chile is Grupo Santander which controls 67% of the stock.
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Source: Banco Santander-Chile via GlobeNewswire