Category: Chile

Banco de Chile placed $87 million worth of local inflation-adjusted bonds Thursday, at an interest rate of 3.16%. The bonds have a maturity of 9.8 years and a duration of 4.66 years. The notes have been rated AA+ by Fitch.

Chile has appointed Rodrigo Iglesias as the new head of the state-run energy board, Comisión Nacional de Energía (CNE), the government announced Thursday. Iglesias replaces Pablo Serra -who was dismissed November 18 after a series of blunders concerning electricity tariffs – and will take over December 4. Although currently working as a private energy consultant advising on Latin American regulatory issues, Iglesias was in charge of the electricity section at CNE between 1998 and 2005.

Chile’s industrial production jumped in October, rising 4.7% year on year, following a year-on-year fall of 2.6% in September, according to figures released by the country’s national statistics institute (INE). The stronger-than-expected figures were helped by the normalization of copper production, said INE, with mining production up 5.8% compared with a year earlier, versus a decline of 8.5% in September.

Chile’s finance minister, Andrés Velasco has said the sovereign will issue up to $700 million worth of local-currency bonds next year. The government has had approval to issue up to $1,200 million worth of bonds next year and has decided to help develop the local-currency debt market, said Velasco in a speech to the local business community Tuesday. The minister gave no further details about the timing of the issuance.

Banco Santander is to offer 7.2% of shares in its Chilean unit, Santander Santiago. The sale, which has been registered with the US Securities and Exchange Commission, will raise up to $646 million via the sale of 11.4 billion ADS. The Spanish bank said it was committed to maintain ownership of at least 75% of its Chilean business.

Chile’s GDP grew by 2.9% in the third quarter of the year, leading economists to predict that the pace of economic expansion in 2006 may be the slowest in three years. Growth has slowed from 5.3% in the first quarter of the year, to 4.5% in the second quarter. Forecasts of 4.5% GDP growth over the year compare with a 6.3% rise last year. Higher lending rates, rising energy prices and interruptions to mining production (one of the main engines of the country’s economy), have all contributed to the slowdown in growth, analysts say. According to the Central Bank, export growth was up to 7.3% in the third quarter from 3.3% in the second quarter, while domestic demand growth fell back to 3.9% from 7.6%.

Chile’s largest mobile phone operator, Movistar Chile, part of Spain’s Telefónica, has secured a syndicated loan worth $171.5 million. The loan matures in November 2012 and will be used to refinance debt. State-owned BancoEstado, Santander Investment and BCI led the syndicate which also included: CorpBanca, Scotiabank Chile, BBVA Chile, Citibank Chile and Banco Bice.

Chilean highway operator Sociedad Concesionaria Autopista del Bosque sold UF1.5 million ($52.6 million) of two series B notes November 16, selling 101.2% over par at a rate of 3.36%. The bonds mature September 2024 and are redeemable from March 15, 2012. ABN AMRO and Celfin Capital arranged. Autopista del Bosque was recently bought by Spanish highway operator Cintra from French road constructor Vinci for $11 million.

Chilean forestry and wood products company Masisa, is to issue $87 million worth of inflation-adjusted bonds in the local market to pay down debt and for investment in expansion, according to the company. Masisa will offer bonds totaling 2.5 million UF via Banco de Chile. The company operates in Argentina, Brazil, Mexico, US and Venezuela.

As was widely anticipated by the market, Chile’s Central Bank kept the country’s benchmark interest rate unchanged at 5.25% at its monthly meeting Thursday. This the fourth time in as many months the Bank has chosen to put a hold on the rates in the face of weaker growth and low inflation.