Banco Santander Chile issues second floating bond in Chilean pesos in the local market
November 29 2018 - 12:35PM
Santiago, November 29, 2018. After
having successfully issued the first floating bond in Chilean pesos
in the local market, Banco Santander Chile went back to the market
with a second series. The bond was issued through a Dutch auction,
with a price of 100.94, which represent a spread of 60bp over the
ICP[1]. The bond
pays annual coupons of variable interest based on the Central Bank
interbank overnight rate plus a spread. The series U3 for a total
of Ch$75 billion will be due June 1, 2021, and has a local rating
of AAA by both Fitch Rating and Feller Rate.
With this milestone, the entity
continues to develop the variable interest rate debt market in
Chile, generating a curve of instruments with different maturities.
This enables the Bank to balance its maturity profile and increase
the liquidity within the market. The development of this new type
of bond started in 2017, finishing off with an extensive local
roadshow where investors were able to learn more about the
characteristics of this new financial instrument.
For Emiliano Muratore, Chief
Financial Officer of Santander Chile, "the second issuance of this
new instrument deepens the market of instruments that protect
against increases in the short-term rate by the Central Bank. The
result of this bond issuance also reflect the hard work done during
the year with investors to promote this type of instrument".
About Banco Santander
Banco Santander Chile is the
largest Bank in the Chilean market in terms of assets, loans and
equity. As of September 30, 2018, we had total assets of Ch$38,026
billion (U.S.$57.9 billion), outstanding loans net of allowances
for loan losses of Ch$29,168 billion (U.S.$44.4 billion), total
deposits of Ch$20,762 billion (U.S.$ 31.6 billion) and equity of
Ch$3,129 billion (U.S.$4.8 billion). Our BIS ratio up to September
2018 was 13.0%, with a core capital ratio of 10.2%. Our long-term
credit risk rating are A1 by Moody's, A Fitch and A Standard &
Poor's.
[1] The average
Central Bank rate from the average interbank rate index (Indice de
Càmara Promedio, or ICP) as calculated and published by the
Association of Banks and Financial Institutions of Chile on a daily
basis from the average interbank rate reported by the Central Bank
of Chile.
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Banco Santander-Chile via Globenewswire
Banco Santander Chile (NYSE:BSAC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Banco Santander Chile (NYSE:BSAC)
Historical Stock Chart
From Jul 2023 to Jul 2024