Chilean Lender Turns to International DCM

Chile’s Grupo Tanner Servicios Financieros is meeting investors ahead of what would be the latest Andean cross-border bond debut. A regular in Chile’s local bond market, the financial services institution is scheduled to visit accounts in Europe, Latin America and the US, according to people following the sale, and is considering a $300m 5-year senior unsecured bond, according to Fitch, which assigns a BBB minus rating. Tanner plans to start in Zurich and Geneva Wednesday, visit London and Lima Thursday, London and Bogota Friday, Boston and Los Angeles the following Monday, and New York and Miami on Tuesday. Proceeds will be used to fund an expected growth in assets as well as to prepay USD-denominated domestic debt. Bank of America Merrill Lynch is sole lead. Tanner is supported by “solid and stable financial performance throughout economic cycles, increased income diversification and the positive long-term prospective in the different segments,” says Fitch. Established in 1993, Tanner is one of the largest non-bank financial institutions in Chile, offering a full range of secured financing products and services mainly to small and medium-sized enterprises. Its loan portfolio is composed mainly of factoring loans (46.9%), car loans (40.5%) and leasing operations (12.6%).