La Araucana Returns to CLP Market

Chile-based financial institution Caja de Compensacion La Araucana has issued CLP10bn ($21m) in local 5-year bonds via Dutch auction, its second issue of the month. The A rated notes, which priced at par, have a coupon of 7.0% and a spread of 125bp over the BCP-5 benchmark, says a banker on the deal. Two bankers off the deal say the spread came in within expectations of 120bp-140bp. Proceeds of the A rated bonds will be used to refinance debt and to offer credit to clients. Pricing is similar to that seen in the company’s previous issue, where it also sold CLP10bn in 5-year notes. That issue had a coupon of 7.00% and priced at 100.39 to yield 6.90%. Itau Chile managed the sale.