Category: Chile

Chile shipper Cia. Sud Americana de Vapores sold an 18% stake in the company to a group of German shipbuilders via an auction on the local exchange for $360m, says Celfin Capital, which managed the sale. The shop does not disclose the names of the buyers. The auction included 318.4m shares which were sold at CLP583.83 per share. Vapores’ shares closed at CLP425.0 on April 16.

Chile’s central bank kept the monetary policy rate intact. Morgan Stanley is pushing forward its expectations for tightening with policy rates ending the year at 2.75% from 2.00% previously, reaching 5.00% by December 2011. Chile’s Celfin Capital says that tightening may begin in the second half of the year, ending 2010 at 2.5%.

Scotiabank’s Chile unit has issued UF1.5m ($65.3m) in 2035 local at 107.10 with a 4.50% coupon to yield 4.08%, a spread of 48bp over the UF-20 benchmark, says Scotia Sud Americano Corredores de Bolsa, which managed the sale. Demand soared to UF5.2m, it adds. The notes are rated AA+ by Fitch and AA minus by Feller. Proceeds will be used to finance long-term assets.

Banco Santander Chile has sold $500m in 2012 floating rate bonds, in what its lead managers claim is the first short-dated floater in Latin American history. It priced the bond at Libor plus 125bp. Demand was heard at more than $1bn, focused mainly on US high-grade accounts. Deutsche Bank and Santander managed the deal, rated A+/Aa3. In December, the bank reopened its 2.875% 2012 for $300m, in a deal also through Deutsche Bank and Santander that yielded 2.657%, or UST plus 138bp. Proceeds are for general bank purposes.

Market consensus sees Chile’s central bank keeping the monetary policy rate unchanged at 0.50% today. The rate has been at that level since July. Morgan Stanley believes Chile’s central bank will remain on hold this month. It is pushing forward expectations for tightening, with policy rates ending the year at 2.75% from 2.00% previously, reaching 5.00% by December 2011. Chile’s Celfin also foresees rates on hold this month, adding that tightening may begin in the second half of the year, ending 2010 at 2.5%.

Chile water utility has placed UF2.75m ($112m) in local bonds in 2 tranches. It sold UF1.00m in a 6.5-year tranche priced at 100.0 with a 2.90% coupon to yield 2.90%, a spread of 68bp over the central bank’s BCU5 bonds, says Larrain Vial DCM banker Eric Vucina. A 21.0-year UF1.75m tranche priced at 101.61 with a 4.20% coupon to yield 4.08%, a spread of 43bp over the BCU5. Vucina claims this as the lowest spread yet for a non-guaranteed corporate bond in Chile. Total demand soared to UF12.00m, the underwriter says. Larrain Vial and BBVA handled the sale. Proceeds will finance the company’s investment plans.

Taking advantage of a relative lack of investment-grade Chile supply, Sociedad Quimica y Minera de Chile has raised $250m, bringing its yield inside of the guidance range. The fertilizer and chemical producer priced the 2020 bond at 99.817 with a 5.500% coupon to yield 5.524%, or UST plus 170bp, well through 187.5bp area guidance. The order book reached $1.25bn, according to bankers on the deal, with mostly high-grade dedicated buyers. The bond was heard trading to yield UST plus 165bp at the end of the day Wednesday. Bankers on the deal say it was upsized to $250m from $200m. Proceeds from the transaction are marked for refinancing debt. Deutsche Bank and JPMorgan ran the sale, rated BBB/Baa1. It is SQM’s first bond since 2006, and the first Chilean corporate transaction since Colbun raised $500m in January.

Chile’s Sociedad Quimica y Minera is talking UST plus 187.5bp area for a new 2020 bond, expected to price today. The BBB fertilizer and chemical producer should raise $250m via its first dollar bond issue in 4 years. Deutsche Bank and JPMorgan are managing the sale.

EM corporate debt analyst Diego Torres has left ING in New York to join Santiago-based Munita, Cruzat y Claro. Torres, who is Chilean, is expected to start later this week, partner Alfredo Harz tells LatinFinance, and will become the financial services firm’s director of corporate fixed-income research. “We are expanding our research group,” Harz says. The brokerage, advisory and asset management shop mostly serves Chilean clients. It also operates an office in Peru, he adds. Munita manages more than $1bn.

Chile’s Banco Internacional has registered with the local financial superintendent a UF750,000 ($30.7m) 2031 subordinated bond issue. The issue will be done in a single tranche paying 4.5%, the company says. Celfin is leading the A minus rated issue.