Category: Chile

Chile expects to have exported $68 billion worth of goods and services this year, a record value according to the country’s finance minister Andrés Velasco. The figure predicted is 70% up on last year ($40.6 billion) and 17% above forecasts offered by the Central Bank in September. The value of exports has been largely driven by the high price of copper – the country’s largest export – in international markets.

Chile’s largest beermaker, Compañía Cervecería Unidas (CCU), has paid $28.3 million for 50% of the juices and drinks brands of local food and drinks producer Watt’s. CCU said the acquisition would boost its market share of the domestic drinks market.

Foreign direct investment (FDI) authorized by Chile this year rose nearly threefold to $4.82 billion from $1.70 billion in 2005, according to CIE, the country’s foreign investment committee. Investment into utilities represented 36% of all FDI, into mining 27%, services 15% and finally transport and telecommunications 11%.

Chile’s Central Bank has held the benchmark interest rate at 5.25%, in line with most analysts’ expectations. This is the fifth time in as many months that the Bank has left the interest rate unchanged. According to the Bank, inflationary costs are “contained” and long-term inflation targets of 3% remain realistic.

Raboinvestments Chile, the local investment banking unit of Dutch bank Rabobank, sold $105 million worth of local inflation-adjusted bonds (UF3 million) Wednesday at a real annual interest rate of 2.95%. The money raised will be used to fund expansion plans in the country. The bonds carry a maturity of 9.10 years and are rated AAA by Feller Rate. Local broker LarrainVial placed the bonds.

Chilean state-run energy concern Empresa Nacional de Petróleo (Enap) has secured a seven-year $150-million syndicated loan via a group of 12 banks led by Calyon. Enap will pay an annual interest rate of Libor plus 0.175% for years one through three; Libor plus 0.20% in years four and five and then Libor plus 0.225% in years six and seven. The loan will be used to pay short-term obligations and fund investment plans next year.

Chilean investment company Inversiones del Rosario has bought a 93.7% stake in local bank Banco Internacional for $55.8 million (29.3 billion Chilean pesos). Banco Internacional is a niche bank focusing on small and medium-sized businesses.

Former dictator of Chile, General Augusto Pinochet, has died at the age of 91 in Santiago after a heart attack followed by complications. Pinochet came to power via a coup in 1973 and ruled Chile for 17 years. In 1988 he lost a national referendum which proposed extending his rule until 1997 and was forced to call a presidential election, which was won by Patricio Aylwin. Pinochet finally handed over power in 1990. He was accused of human rights abuses and fraud but never stood trial, most recently pleading ill health. Support and criticism of him have divided Chile for years.

Chilean sugar producer Empresas Iansa has earned an upgrade from ratings agency Standard & Poor’s on the basis of improved financials, following debt reduction and improved cash generation by the company. S&P raised its ratings on Iansa to BB+ from BB, with positive outlook. It said the ratings were “also underpinned by the company’s strong competitive position as the only sugar producer in Chile, and IANSA’s being one of the top 10 low-cost sugar producers worldwide and the lowest-cost producer of sugar from beets.”