Category: Chile

Banco de Chile, the country’s second-largest bank, has announced several senior management changes. Former chief executive Pablo Granifo becomes president of the bank, exchanging places with Fernando Cañas, who takes over as chief executive. Two board members – Segismundo Schulin-Zeuthen and Máximo Pacheco – have resigned and are replaced by Jaime Estévez, formerly minister of public works, and Hernán Büchi, a finance minister under Augusto Pinochet.

Chile’s long-awaited second stage of its capital markets reform – MKII – has finally been approved by Congress leaving it ready to be enacted by the government. The reform focuses on three main areas: financing and promoting small and mid-sized companies; capital market security; and developing the financial markets. The first part of the reforms were brought in five years ago.

Chilean water company Aguas Nuevo Sur Maule sold $143 million-worth (UF4.15 million) of local inflation-adjusted bonds on Tuesday, the company said in a filing with the Santiago Stock Exchange. The 21-year bonds, placed by BBVA and Santander Investment, were sold at 101.89 to yield 3.83%. The funds raised will go towards refinancing a five-year syndicated loan.

Banco de Chile, the country’s second-largest bank, placed $68.5 million-worth (UF2 million) of local inflation-adjusted bonds on Friday. The paper, rated AA+ by Feller-Rate, was sold to yield 3.28%, equivalent to 64 basis points over the comparable Central Bank notes. Proceeds will fund expansion, said BCH.

Chile’s Central Bank has held the overnight benchmark lending rate at 5%, in line with market expectations. The Bank said that inflation had moderated in the past month and long-term forecasts remained at 3%. Prices fell by 0.2% in February and annual inflation dropped to 2.7% from 2.8% in January. The government recently unveiled plans to stimulate economic growth which fell to around 4.2% last year.

Forestry and wood products company Masisa has become the first Chilean company to join the Chicago Climate Exchange (CCX), committing itself to reduce its carbon emissions by 6% over the next three years. CCX is the first exchange to offer trading in carbon credits, allowing companies to buy and sell emissions certificates. Masisa has plants in Chile, Argentina, Brazil, Venezuela and Mexico.

Cristián Pinto Marinovic is to be the new chief executive of Chilean brokerage firm Valores Security. He replaces Nicolás Ugarte Bustamante, who was appointed head of finance at Banco Security. Pinto is currently head of investments at the firm.

Medium-sized Chilean Banco del Desarollo has placed $34.11 million worth (UF1 million) of local bonds to yield the rate of inflation plus 4.04%. The notes have a duration of 14.65 years. The bonds carry an A minus rating from Fitch and Feller Rate.

Chilean holding company Compañía General de Electricidad (CGE) is preparing to buy local electricity distributor EMEL, making it the country’s largest electricity provider – based on number of clients – with 46% of the market. In terms of electricity sales, it would be second only to Chilectra. Earlier this month, US energy management company PPL Corporation announced that it intends to sell its regulated electricity delivery operations in Chile, El Salvador and Bolivia.

Chile saw a narrower trade surplus of $1.68 billion last month on lower exports of $4.57 billion and imports of $2.9 billion. The figure compares with a surplus of $2.8 billion in January. Analysts say a drop in copper prices, Chile’s largest export earner, contributed to the reduced surplus.