Factorline Set for Domestic Bonds

Chilean financial services company Factorline is expected to issue UF and CLP-denominated bonds today. The company plans a 5-year CLP10bn ($21m) tranche with a 5.0% coupon, according to a banker on the deal. A 7-year UF2.3m ($106m) tranche with a 3.5% coupon and 10-year UF2.3m tranche with a 3.8% coupon are also possible. The banker says it is likely only the 10-year will be issued, as the company prefers longer tenors for UF-denominated issues. Proceeds from the deal, rated A on a national scale, will be used to refinance debt and for working capital. Banco de Chile is managing the sale. In August, Factorline issued CLP20bn in 2015 local bonds through BBVA yielding 6.88%, or 129bp over the government benchmark.