Santander Returns With Chile Floater

It was Santander Chile’s turn to tap the bond markets Tuesday, raising $500m in the year’s first LatAm floating rate deal a day after the Spanish bank’s Brazil unit raised $650m in a 2016. The Chilean bank popped out in the market Tuesday morning to continue the trend of issuing a 5-year. The AA minus 2016 priced at par Libor plus 160bp. There had been no guidance on the bond, according to bankers on the deal, who decline to indicate book size. “Banks should borrow as much now as they can get their hands on,” says a London-based EM portfolio manager. He adds that securing external liquidity makes sense in the face of uncertainty about the future of capital controls in Brazil and other countries. Proceeds will help replenish the bank’s capital. JPMorgan and Santander managed the sale. The bank was the region’s last floating-rate issuer, in September, when it issued a $200m 2011 bond at Libor plus 100bp, as part of a $1.2bn 3-tranche deal that also included fixed USD and global CLP portions. Santander Brasil and Bancolombia have each brought 5-year bonds this year, with Banco Cruzeiro do Sul set to land one as soon as today.