Santander Chile Emerges with Bond

Santander Chile has raised $750m in the international bond market, with investors putting in for some $5bn in orders. The Aa3/A/A+ rated lender got decent demand despite tightening to UST+ 232.5bp from initial UST+262.5bp-area price thoughts. The 2022 bond priced at 98.338 with a 3.875% coupon to yield 4.079% or UST+232.5bp, inside of 237.5bp-250bp guidance. The bonds were trading up 0.125 points in the grey, according to a trader. “People want yield and were willing to go longer for a single A deal at 4%. This was a great transaction and priced inside their 3-year,” says a banker away from the transaction. Leads and bankers away from the deal were looking at BCI’s 2022 bonds as a reference point, quoted at 225bp on an interpolated basis. Deutsche Bank, Goldman Sachs, JPMorgan and Santander managed.