BancoEstado placed their first bank bond in pesos
Placing five year bank bonds
BancoEstado made this Thursday its first placement of bank bonds in local currency for $50 billion, equivalent to US$80 million, on a 5-year term and 4.1 year duration.
The operation reached 4.16% placement rate, which is equivalent to a spread of 54 basis points on the risk-free instrument, which with a demand of four times the issue is considered very convenient by the Institution.
Ms. Andrea Silva, BancoEstado's Financial Balance Manager, said: "This operation is historic for our Bank, since it is the first placement of bonds that we make in pesos, which allows us to further expand the diversification of the Bank's liabilities and the type of investors accessing these instruments." The executive added that "the high demand achieved by this issue shows us the interest that exists for our papers."
The financial institution reported that the main objective of this placement is to collect long-term resources to finance the Bank’s commercial development.
Placed bonds hold AAA (ICR) and AAA (Fitch) risk ratings.