Rabobank Chile has called an extraordinary shareholder meeting for November 15 to discuss a Tier 1 capital raise, general manager Fernando Cumsille tells LatinFinance. Although a local paper had reported the bank could look to raise up to $40m, Cumsille says the amount has not yet been determined. Cumsille says the bank is raising the funds in order to maintain a strong financial structure and increase its lending limit.
Category: Chile
Posted inDaily Brief
Telefonica Moviles Comes in Low
Telefonica Moviles, the Chilean wireless unit of Spain’s Telefonica, placed a tightly priced $300m debut dollar bond on $2bn in orders, according to bankers managing the 5-year sale. The BBB+ bond priced at 99.727 with a 2.875% coupon to yield 2.930%, or UST plus 180bp, the tight end of 185bp plus/minus 5bp guidance, and near the bottom of 175bp-200bp initial talk. According to Dealogic, the bond has the lowest-ever coupon for a public 5-year dollar bond from a LatAm-based issuer. The bond was heard up 0.5 points late Wednesday, according to investors. The issuer opted for the 5-year as that maturity best matched its profile, a banker on the deal says, noting it has longer maturities on its local curve. Proceeds from the issuance are marked for refinancing syndicated loans due next year and general corporate purposes. BBVA, Citi and Deutsche Bank managed the deal.
Posted inDaily Brief
No Credit Impact in LAN/AIRES
Fitch views LAN’s announcement that it is acquiring 98.942% of the outstanding shares of AIRES, the Colombian airline, as neutral to its credit quality. The deal is not expected to materially change LAN’s capital structure or liquidity position over the near term. New debt added to the Chilean airline’s balance sheet is not expected to be material.
Posted inDaily Brief
Gener Ratings on Downgrade Review
Moody’s has placed Gener’s Baa3 rating under review for possible downgrade reflecting a continued delay in completion of the 270MW Campiche coal-fired plant, which has been on hold for 16 months. The review also reflects the company’s weak retained cashflow-to-debt and free cashflow-to-debt metrics. Gener is Chile’s second largest electricity generation company.
Posted inDaily Brief
Japanese Buy Aguas Nuevas
Japan-based trading company Marubeni and the Innovation Network Corporation of Japan (INCJ) have bought Chilean water utility Aguas Nuevas from Santander, according to a stock exchange filing. According to a report in a local newspaper, Marubeni and INCJ each paid $124m, for a 50% stake in the company. Santander and Aguas Nuevas did not return calls for comment. Marubeni did not return an e-mail seeking comment.
Posted inDaily Brief
Price Heard on Itau Chile Loan
Banco Itau Chile is offering Libor plus 90bp on a 2 year $150m term loan facility, according to bankers not on the deal. Credit Agricole and BNP Paribas are the leads on the transaction, with the banks meeting set for Wednesday. Bankers away from the deal expect proceeds of the loan to go toward general corporate purposes. Two bankers say pricing seems a little tight, compared to the loans of other Chilean financial institutions with substantially larger market shares. In August, Santander Chile received a $175m syndicated loan from 8 banks, including 3 Taiwanese participants. The 18 month facility priced at Libor plus 80bp. Chile’s Corpbanca also closed a $167.5m 2 year loan in August. Pricing was on a ratings grid, out of the box at 95bp for BBB+.
Posted inDaily Brief
Chilean Wireless Whispered High 100s
Telefonica Moviles, the wireless unit of Telefonica in Chile, is heard whispering yield indications of UST plus 175bp-200bp for a dollar bond roadshowing this week, according to investors. The mobile operator plans a $380m 5-year, according to Fitch, which assigns a BBB+ rating. It is set to finish meeting investors in Boston and New York today. Proceeds from the issuance are marked for refinancing needs and general corporate uses. BBVA, Citi and Deutsche Bank are managing.
Posted inMagazine
People: Brazilian IB Moves
Eduardo Centola has joined UBS as CEO of the investment bank in Brazil, where the Swiss bank is focused on rebuilding its coverage.
Posted inMagazine
Best Bank – Chile
Santander Chile says its strength has come from growing selectively and increasing sales without expanding the client base too much, so that it can control risk.
Posted inMagazine
Best Investment Bank – Chile
Chile-based investment bank Celfín Capital has seized the boom in 2010 as an opportunity to push it into the big leagues.