Category: Chile

Chile’s state oil company ENAP says it plans to refinance up to $500m in short-term debt by issuing bonds or signing a loan. It is awaiting authorization from the finance ministry. However, the company adds that it is not in the process of issuing international bonds, despite a recent local press report to the contrary. ENAP notes that any new issue needs the approval of the company’s board as well as the country’s finance and economy ministries. It adds that the board has given its assent to debt refinancing and the request to begin the process was approved by the finance ministry June 22.

Chile’s Banco Bice has issued UF2m ($79m) in local 10-year bonds through Dutch auction. The notes priced at 100.30 with a 3.50% coupon to yield 3.49%, a spread of 59bp over the BCU-10 benchmark. Proceeds will be used to finance lending. Bice Inversiones Corredores de Bolsa managed the issue.

Chile car loan company Forum Servicios Financieros has issued UF1.3m ($51.4m) in 2.5-year local bonds. The notes came at 98.90 with a 2.20% coupon to yield 2.68%. Proceeds will be used to enhance liquidity. BBVA, which owns a 50% stake in Forum, led the sale.

Chile-based Banco Bice plans to issue UF2m ($79m) in local bonds due in 10 years. The issue is set to happen July 6. Bice’s brokerage unit will manage the sale.

Fitch has downgraded the ratings of Chile-based forestry company Masisa to BB from BB+ to reflect weak credit ratios for the rating category and an increasingly negative operating environment in Venezuela and the risks of operating in Argentina. Fitch expects that Masisa will be able to offset some of the negative impact of the Venezuelan devaluation on its consolidated Ebitda in 2010 due to a sound recovery of LatAm markets, especially Brazil and Chile. Fitch is projecting a net debt/Ebitda under 3.5x by the end of 2010, which should gradually improve.

Chile’s BancoEstado has issued UF3m ($116m) in local bonds. The 28-year AA+/AA rated notes have a coupon of 4.50% yielding 3.74% and priced at 112.38. They have a spread of 32bp over the local central bank notes. Proceeds will be used to finance the bank’s expansion plans. The bank itself led the sale.

Chile’s Corpbanca is looking to close this month a $150m 2-year loan which may be upsized depending on demand, say bankers. Pricing is on a ratings grid, out of the box at 95bp for BBB+. For an A minus rating, the spread falls to 87.5bp, rising to 112.5bp for BBB, 137.5bp on BBB minus, say bankers. “The spread is a little tight, but they are paying nice fees,” says a banker, who sees a 75bp fee for the biggest ticket as attractive. The average life is roughly 1.75 years and there may be room to grow towards $200m. With BNP, Citi, Commerzbank, Standard Chartered and Wachovia already apparently on board, the deal is understood to be seeking only minor retail participation. European banks are heard not participating owing to a sharp recent rise in their cost of funds, while Asian institutions are said to be plugging the gap.

Chile plans to issue up to $3bn domestically in the second half of the year, according to local and wire reports citing remarks by finance minister Felipe Larrain. It sold $3bn in the first half, through regular domestic auctions of 5, 10, 20, and 30-year bonds. The sovereign is also planning its first international issue since 2004, with a $500m debut peso-denominated global issue and a $1bn 10-year dollar bond in the works. Citi, JPMorgan and HSBC are heard having won the international mandate.

Chilean hotel company Enjoy has issued UF3m ($120m) in local bonds in 2 tranches. A 2015 UF1m piece priced at 100.21 with a 4.00% coupon to yield 3.94% and a 2024 piece for UF2m priced at 101.28 with a 4.75% coupon to yield 4.59%. The issuer says it will use proceeds to pay down debt. IM Trust led the issue.

Chile state owned lender Bancoestado plans to issue UF3m ($118m) in 28-year bonds June 30. It had previously notified the market it would issue the bonds today, but later changed the date, without explaining why. Calls to the bank were not returned. The bond is denominated in inflation-linked UF units and will carry a 4.5% coupon. Local ratings are AA+/AA and the deal will be self-led. The bank has been absent from the local market since December, when it priced a UF5m 3.6-year deal at 98.99 to yield 3.40%, or 60bp over the sovereign.