BancoEstado makes a new placement of bank bonds
Underwriting 10 year bank bonds
BancoEstado placed bank bonds series Q1 totaling UF 2 million, equivalent to US$85 million. This 10 year term instrument and 8.3 year duration reached a 1.90% placement rate, achieving a spread over the risk free instrument of 65 base points.
Ms. Andrea Silva, Manager of BancoEstado Financial Balance Office, highlighted the fact that the main objective of this placement is to borrow long term resources to accompany the commercial growth of the bank.
The placed bonds hold AAA (ICR) and AAA (Fitch) risk rate, semiannual interest payments and capital amortization in a single installment on due date.
This placement was executed at the Santiago Stock Exchange under the “Dutch Auction” mode, by underwriter BancoEstado S.A. Corredores de Bolsa, whereby institutional investors showed high interest and demand was four times the issue.
BancoEstado holds excellent conditions of stability, solvency and one of the best risk ratings in the financial system, hence allows offering investors profitable, safe and trustworthy financial instruments.