BCP Sniffs COP DCM Opportunity

Fresh from Chilean financing, Banco de Credito del Peru (BCP) is not in immediate need of raising funds abroad, though it could consider a Colombian peso-denominated transaction in the future. “There is a possibility to issue in Colombia in the future, but no concrete plans. It would be an interesting diversification, like the local Chilean bond,” says a BCP finance official. He adds that the bank has no immediate liquidity or capital needs that would motivate such a sale. CFO Alvaro Correa has recently been cited in the local press talking about the possibility of such an issue. BCP this week sold $106m equivalent in UF-denominated 2014 bonds in the Chilean local market, the second-ever debt sale by a foreigner in Chile. The Peruvian bank placed UF2.7m ($106m) in 2014 bonds, priced at 97.92 with a 3.50% coupon to yield 3.97%, or 140bp wide to corresponding government bonds, according to a banker managing the sale. This equated to about 5.4% in dollars.