Itau Chile Launches Long Local Bonds

Banco Itau Chile has sold UF1.5m ($56m) in inflation-indexed bonds on the domestic market. The 2023 notes priced at 106.53 with a 5.00% coupon to yield 4.53%. The spread is 103bp over the Central Bank benchmark, Itau says, claiming the lowest such spread for a Chilean bank bond since the start of the credit crisis in September. It plans to use proceeds to fund long-term operations. Itau Chile managed the sale, rated AA minus on a national scale. The Brazilian bank entered the Chilean market in 2007 after purchasing BankBoston assets from Bank of America. The Chilean unit last sold domestic bonds last June, placing $84m in dollar and UF-denominated notes.