BancoEstado Sells $170 Million Inflation-Linked Bonds

Chilean state-owned BancoEstado sold $169.6 million local inflation-linked bonds Thursday, to add to the bonds it sold last month worth $85 million. The bonds were sold with an annual interest rate of 3.49%, less than the 3.70% originally offered, and at a spread of 47 basis points over the Central Bank’s benchmark bonds. The Bank plans to use the money raised from the five-year subordinated bonds to help fund its program of expansion. BancoEstado is Chile’s third-largest bank, in terms of loans.