Category: Chile

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 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.

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.

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.

Chile’s ENAP is pushing the envelope with a $150 million syndication through Calyon. A 17.5bp margin is heard on a seven-year final (5.75 average) deal, stepping up. It is launching this week in New York.

Chilean utility company Sanitaria Essbio placed $174.3 million worth of local inflation-adjusted bonds in the market Wednesday, opting against issuing a 10-year bond as well. The bond, which carries a maximum maturity of 23 years, has an internal rate of return of 3.68%. The money raised will be used to refinance short-term bank debt and complete investment financing over the next few years. BBVA and Santander Investment arranged the issue. Sanitaria Essbio, controlled by investment fund Southern Cross, is Chile’s second-largest waste water company.