Category: Chile

Dutch bank Rabobank has agreed to buy 100% of Chilean HNS Banco in a deal estimated to be worth around $50 million. The Chilean bank, which specializes in financing the local agri-industry, will become part of Rabobank Chile. The transaction is due to close end-April subject to regulatory approval.

Fitch Ratings has upgraded the foreign currency ratings of Chilean air carrier LAN Airlines to BBB from BBB minus. The outlook is stable. The rating action reflects continued improvement in operating results and credit protection measures from higher revenue in both passenger and cargo businesses and non-fuel cost reductions, said Fitch. Moreover, the Agency expects the incorporation of a new low-cost business model for domestic and short-haul regional routes should drive “strong margin improvement over the next several quarters”.

Chilean bank BICE has pulled in $102.6 million (UF3 million) from the sale of its AA-rated local paper. The five-year inflation-adjusted local bonds offer an annual yield of 2.99% and a spread of 61 basis points over comparable Central Bank paper.

Chilean consumer prices picked up speed in March, up 0.4% against February’s prices, making the year-on-year rise 2.6%. The Central Bank is targeting inflation of 3% this year. Core inflation last month was 0.3.%. Data released by national statistics bureau, Ine, show that education and food costs were the highest climbers last month, up 2.6% and 0.7% respectively.

Chilean water utility Esval successfully raised $79 million from the sale of local inflation-adjusted bonds, the company said on Wednesday. The company sold UF2.3 million of the 21-year securities, just shy of the planned amount (UF2.5 million), to yield 3.50% or 90 basis points over comparable local Treasuries.

Chilean financial holding company Empresas Juan Yarur has entered the retail market by buying one of the country’s leading pharmacy chains, Salcobrand, for $129.4 million equivalent (69.5 billion pesos or 940 pesos per share). The acquisition will give Empresas Juan Yarur a network of 296 outlets and annual sales of around $450 million, representing a market share of around 26%. IB partners advised Empresas Juan Yarur; ABN AMRO advised Salcobrand.

Cristián Donoso Larraín is the new chief executive of Santander Investment brokers reported Chilean daily El Mercurio. Donoso was formerly head of corporate banking at Santander Global Banking and Markets.

Medium-sized Chilean Banco Security sold $34 million-worth of inflation-adjusted local bonds, it announced on Friday. The 25-year notes carry a grace period of 10 years and have a duration of 13.5 years. The notes were sold to yield 3.76%, or equivalent to a spread of 78 basis points over comparable Central Bank 20-year paper.

Investment banker Jorge Valencia is to become the new chief investment officer at Chile’s largest pension fund administrator BBVA Provida, from the beginning of May, reports local daily El Mercurio. Valencia, who moves from JP Morgan in New York, takes over from Joaquín Cortez to manage the $24 billion portfolio. Cortez will assume control of pension funds in Latin America for BBVA.