CorpBanca is studying a possible merger with a local or foreign bank, it says. “CorpBanca is analyzing, with the assistance of international investment banks, a possible transaction that involves the bank in a business tie-up with national or foreign operators,” it says. The deal would be structured as a share swap. CorpBanca, which has banking operations in Chile and Colombia, said on Friday that no decision or agreement had yet been made, nor had the structure of any deal been decided. It does not name any potential partners. Controller Alvaro Saieh has been seeking to raise cash since his SMU retail operation breached debt covenants earlier this year.
Category: Chile
Posted inDaily Brief
Santander Chile Gets Local Funds
Santander Chile has sold UF4m ($176m) in domestic bonds, it says. The 10-year notes have a 3.50% coupon and priced at a premium to yield 3.44%, or government bonds plus 130bp. The issuer is rated AAA on a national scale. Santander managed the sale.
Posted inDaily Brief
BTG Chile Targets RE Fund
BTG Pactual Chile is preparing a new fund focused on real estate development investments in Chile and Peru, it says. The fund is targeting a size of $100m, for investment in residential, office and commercial property. It would be the second and largest such fund, after a $45m fund raised last year. BTG is currently marketing the fund.
Posted inDaily Brief
Carozzi Opens Rights Offer
Carozzi has launched a CLP37.5bn ($72m) equity capital raise, it says. The Chilean food and agricultural products company is offering existing holders 28.8m shares at CLP1,300 each through December 24.
Posted inDaily Brief
Clinic Advances Domestic Bond
Chile’s Clinica Las Condes could sell UF1m ($45m) in domestic bonds as soon as the end of next week, according to people following the sale process. The health services provider is able to offer debt from three tranches, all UF-denominated and paying a 3.95% coupon. Two 21-year tranches come with a 10-year grace period, and a 26-year tranche comes with a 5-year grace period. Las Condes is raising funds for expansion projects. BICE is managing the transaction, rated AA+/AA+ on a national scale.
Posted inDaily Brief
Generator Preps Hybrid Bond
AES Gener plans to sell $450m in new junior subordinated hybrid bonds, according to a Fitch report assigning a BB rating to the transaction. Starting Wednesday, the Chilean generator will market the deal in Lima, Hong Kong, Santiago, Singapore, Los Angeles, Switzerland, Boston and London, before ending in New York December 4 or 5, according to people familiar with the process. Citi and Goldman Sachs are managing. The bond should have a 2073 maturity, and allow Gener to raise funds to finance its equity contributions to the Alto Maipo hydroelectric and Cochrane coal-fired generation projects in Chile, as well as to repay upcoming maturities and for general corporate purposes. It was approved for a $450m equity capital raise in August. The hybrid notes will receive a 50% equity credit, Fitch says, given that interest payments on the notes are deferrable at the company’s discretion. Also, the notes’ subordinated ranking provides loss absorption for more senior indebtedness of the company. As a result of the proposed debt issuance, the company’s consolidated leverage is expected to increase above 4.5x by 2015, which is considered to be more in line with its senior BBB minus rating.
Posted inDaily Brief
SMU Gets Saieh Cash
Chilean billionaire Alvaro Saieh has completed a $300m capital increase for SMU, the retailer says. A CLP96.4bn ($186m) payment completes the CLP151.33bn process, done at CLP178.90 each. The company plans to sell a further $200 million of shares by October 2016, as part of a plan to shore up its finances. SMU has also agreed to take out a subordinated credit for $300m before the end of the year and is also working on the sale of $300m-$400m in non-core assets.
Posted inDaily Brief
Chile Solar Plant Clinches Funding
SunEdison has closed a $100m non-recourse financing package supporting a project in Chile with the Overseas Private Investment Corporation (OPIC) and the IFC, it says. The 51 megawatt San Andres solar power plant is located in the Atacama region and will sell power to the spot market. In the deal, $63m is coming from OPIC and $38m from IFC. The project also counts on a $25m CLP-denominated VAT facility. Once online in 2014, the plant should be LatAm’s largest solar photovoltaic merchant plant. SunEdison did not respond to a request for additional comment.
Posted inDaily Brief
Santander Chile Inks IDB Loan
Banco Santander Chile has inked a $100m loan with the Inter-American Development Bank (IDB), it says. The funds will be used to make loans supporting international trade. Additional details were not available. The transaction comes under the IDB’s Trade Finance Facilitation Program and is the first such loan to a Chilean bank. Santander Chile is rated Aa3/A/A+.
Posted inDaily Brief
Bottler Names Next CEO
Embotelladora Andina has picked Jose Luis Solorzano as its next CEO, it says, to replace Abel Bouchon when he leaves March 31, 2014. Solorzano is CEO of the Chilean bottler’s Embotelladora del Atlantico subsidiary in Argentina.