Category: Chile

Chile’s economic development agency Corfo has added a sixth venture capital fund to the program it initiated this year with a new $28 million fund, Axa Capital Chile, launched in partnership with Axa Private Equity. Axa Capital will target companies in any sector, but preferably those involved in agroindustry with sales between $5 and $25 million. So far this year, Corfo’s venture capital program has raised $120 million in six funds.

Chile’s first football club to list on the stock exchange says it is planning to return soon to the capital markets to raise more financing. Blanco y Negro, the company that runs the club, says it plans to increase its share capital by issuing 25 million new shares worth around $14 million. Blanco y Negro floated on the Santiago Stock Exchange in June when it issued 100 million shares at 184.7 pesos per share. A second club, Union Española, is due to list on the exchange soon.

Chile’s largest steel company, CAP, has issued UF4 million ($132 million) of bonds in the local market. The inflation-linked bonds mature on 1 August 2020 and carry a rate of 4.40%. The money raised will go to refinance debt and towards investments.

Chilean food group Invertec said it plans to float 15% of its stock on the Chilean Exchange at the end of October. The company hopes to raise $20 million through the listing.

Chilean retailer Cencosud plans to issue $300 million in bonds in the local market, with a first tranche of $150 million to be launched before the end of this year. The other $150 million will be issued in the middle of next year. The money raised will be used to pay down short-term debt.

Chilean retailer Cencosud plans to issue $300 million in bonds in the local market, with a first tranche of $150 million to be launched before the end of this year. The other $150 million will be issued in the middle of next year. The money raised will be used to pay down short-term debt.

Chile’s Central Bank has raised its overnight benchmark lending rate by quarter of a percentage point to 4.25%, the highest level in three years. This is the tenth hike in interest rates in 14 months. The move was widely expected by analysts in the light of growing inflationary pressures in the country. Chile’s rate of inflation was 3.9% as at end-September, compared with 1.5% a year earlier.

Chile’s largest financial institution, Banco Santander Chile, has issued $270 million-worth of five-year ‘readjustable’ or inflation-linked bonds in the local market. The money raised will be used to grow the bank’s mortgage-lending business. Santander Chile current has 24.7% of the house financing market in the country. The issue is one of the largest in the Chilean market so far this year. The bonds have been rated AA+ by Fitch Ratings. Santander Investment arranged the issue.

Chile’s economy expanded by 5.9% year-on-year in August, driven by the high price of copper in the global market. This followed growth of only 4.4% in July. The higher-than-expected growth and quickening rate of inflation may prompt more hikes in interest rates, according to analysts. The Central Bank raised the benchmark lending rate last by a quarter of a percentage point on 8 September to 4%.

Inflation in Chile rose to 1.0% in September, following August figures of 0.3%. This brings cumulative inflation for the first nine months to 3.9%. Higher transportation costs due to record oil prices drove prices up. Meanwhile, Paraguay recorded inflation of 1.4%, pushing the cumulative rate to 6.9% as at the end of last month. Again, high oil prices are blamed on the rising cost of living in the country.