Yearly Archives: 2012

Brazil’s Banco Pine is understood to be starting its roadshow for a so-called Huaso bond in Chile’s local bond market. The mid-size Brazilian lender has registered a UF6m ($282m) program of up to 10 years, sources say. Fitch assigns it an A minus national-scale rating. Pine’s program covers issuance in UF, CLP or USD, with proceeds supporting the bank’s growth. Pine has hired JPMorgan and Celfin to manage the process, according to people familiar with the plan, for which the issue date remains unclear. The company is looking to diversify its funding, says a person familiar with its plans, while Chilean investors with excess cash must look for investments outside of their market. In August, Mexico’s Corporacion Geo issued UF342,000 in the Chilean market, bringing the first Huaso sale since 2010, though at a smaller than expected size. Acting under a $100m-equivalent shelf and initially announcing UF0.5m, the Mexican homebuilder priced the 2020 at 91.40 with a 6.50% coupon, to yield 7.8%, or government paper plus 540bp. Proceeds will be used for refinancing short term debt. Santander managed the deal, rated BBB/BBB on a national scale. BTG Pactual has also been heard talking with investors about the possibility. Previously, only Mexico’s America Movil and Peru’s BCP have executed Huaso bonds, in which peso-denominated notes are issued domestically by foreign entities.