Category: Chile

Chilean retailer Ripley Corp SA is to issue debt in the local markets worth an equivalent $210 million. The company plans to issue the bonds over the next three year in two series: one worth $70 million and the other worth $140 million.

Chile’s second-largest bank, Banco de Chile, is set to be the country’s first financial institution to open a branch in Beijing, China. The bank has said it plans to take advantage of a new free trade accord between Chile and China and will open the branch next year.

Chile’s GDP grew 5.2% in the third quarter of this year, driven by strong copper prices and consumer spending. The rate of growth is, however, down on the second quarter expansion of 6.5% as a strengthening peso is having an effect on exporters. The economy has expanded in every quarter for the past six years since coming out of recession at the end of 1999.

Former Chilean dictator Augusto Pinochet has been put under house arrest on charges of tax evasion and fraud. The arrest follows an investigation that began last year into $28 million funds held outside Chile in secret accounts.

Chile’s banking sector grew by 11.45% between January and October this year. Net earnings rose to $1.26 billion, driven by an increase in lending. Chile’s largest financial institution, Banco Santander Chile, announced profits for the period of $377 million.

Chile’s Supreme Court has rejected an appeal for bail for former president of Peru Alberto Fujimori. Fujimori was arrested two weeks ago in Chile after arriving from Japan where he has been since resigning his presidency and fleeing Peru in 2000. Last week an Appeals Court rejected an initial request for bail. Fujimori faces charges in Peru of corruption and human rights abuses.

Inversiones Aguas Metropolitanas (IAM), Chile’s largest drinking water provider, has suspended a planned secondary share offering citing a failure to reach the minimum share price set. IAM had been looking to raise $550 million via the local market with a listing of 49.9% of its stock.

Masisa, Chile and Latin America’s leading wood board manufacturer is looking to raise $160 million via a share offering to increase the company’s capital. Around 40% of the shares to be offered will be preferential shares made available to existing shareholders. The offering will be made via the Santiago Stock Exchange on 7 December.

A Chilean Appeals Court has ruled that former President of Peru Alberto Fujimori must remain in jail while extradition proceedings take place and has rejected an appeal against his imprisonment without bail. Fujimori faces charges in Peru of corruption and human rights abuses. He resigned his presidency and fled to Japan in 2000.

The Chilean peso has hit a five-year high against the US dollar, up to 523.20 pesos yesterday. Buoyant copper prices continue to boost exports and drive the currency higher. The peso has risen 13% against the US dollar in the past 12 months, one of the best performing developing market currencies in the world. Analysts believe the currency will continue to appreciate this year in the light of good economic indicators.