Category: Chile

Wrapping up investors meetings Monday, Chilean paper producer Celulosa Arauco y Constitucion is heard talking UST plus 275bp area for a new 10-year bond of up to $400m, according to investors. The sale is expected as soon as today. JPMorgan and Santander are managing the transaction, rated Baa2/BBB/BBB+.

Chile’s Banco Bice has issued UF1m ($43m) in local bonds via a Dutch auction in a single tranche. The 25-year notes priced at 102.73 with a coupon of 3.75% to yield 3.60%, a 43bp spread over the BTU-20 benchmark, says a banker on the deal. The duration of the notes is 15.41 years, while that of the benchmark is 14.66. Total demand surpassed UF4m, the banker says. Bice’s brokerage unit managed the sale.

Chile-based construction company Salfacorp has issued UF2m ($86m) in local bonds via Dutch auction. The issue was done in 2 tranches. A UF1m 5-year priced at 98.65 with a coupon of 3.25% to yield 3.47%, for a 104bp spread over BCU-5. A UF1m 21-year (9.1-year duration) piece meanwhile priced at 99.56 with a coupon of 4.00% to yield 4.00%, an 80bp spread over BCU-20 (11-12-year duration) and 120bp over BCU-10 (8.0-8.5-year duration). Proceeds of the BBB+/A minus bonds will be used to refinance debt. Celfin led the sale.

Santander Chile was set to begin meeting investors today in London, and travel to see the US buyside next week. The bank has not indicated details of a new transaction. Deutsche Bank, JPMorgan and Santander are managing the tour. The A+/Aa3 bank sold $500m in 2012 floating-rate bonds in April through Deutsche and Santander, and then met Asian investors in May.

Chile’s Banco Bice is planning to issue UF1m ($43m) tomorrow via a Dutch auction, the banks says in a regulatory filing. The notes will mature in 25 years. Bice Inversiones, the bank’s brokerage unit, will manage the sale.

Celulosa Arauco y Constitucion is preparing a new 2020 benchmark-sized bond. The Chilean paper company, rated Baa2/BBB/BBB+, will start pitching investors today in New York and visit Los Angeles before finishing Monday in Boston and London. A size of $500m looks likely, depending on demand. JPMorgan and Santander are the leads. Arauco has been raising funds domestically, including last week’s UF5m ($214m) 2020 bond. It placed $500m in 2019 dollar bonds in July 2009.

Molymet plans to sell 10% of itself on the Chilean stock market in November to raise $200m equivalent for its expansion plans. Banchile Citi and IM Trust are managing the sale. Molymet’s 4-year expansion plan is aimed at fulfilling growing demand of molybdenum, a copper by-product used to strengthen steel, as the world economy recovers and steel consumption grows in Asia. Molymet sold $102m equivalent in Mexican peso bonds last month. In March it agreed to buy China’s Luoyang High Tech Molybdenum & Tungsten Materials for $37.7m.

Chilean paper company Celulosa Arauco has placed UF5m ($214m) in local 10-year bonds. The notes priced at 100.57 with a coupon of 3.25% to yield 2.93%, a spread of 53bp over the government benchmark. Proceeds will be used to refinance debt. BBVA and Corp Capital Corredores led the sale. Arauco is rated AA on a national scale.

Chile-based bottler Coca-Cola Polar has issued 2 series of local bonds worth UF2.5m ($160m). A 5-year UF1m tranche priced at 100.31 with a coupon of 3.00% to yield 2.93%, or 56bp over the government benchmark. A 21-year UF1.5m tranche priced at 106.05 with a coupon of 4.00% to yield 3.48%, or 54bp over the 20-year government benchmark. Proceeds will be used to refinance debt. IM Trust and Penta Corredores handled the sale, rated AA minus on a national scale. Also in Chile’s domestic market, Celulosa Arauco is expected to issue today up to UF5m ($211m) in local 2018 and 2020 bonds, both paying 3.25% coupons.