Factorline Completes Local Issue

Chilean financial services company Factorline has issued UF1.6m ($74.0m) in A rated 10-year bonds, getting more than 2x demand, says a banker on the deal. The UF notes priced a 3.80% coupon at 99.43 to yield 3.90%, or 115bp over the BCU-10 benchmark. The tranche follows a CLP15bn ($32m) portion which priced Tuesday. Proceeds will be used to finance the opening of a leasing unit, says the banker, who adds that the business will generate revenues in UF. Tuesday’s 5-year CLP bonds priced a 7.0% coupon at 98.41 to yield 7.51%, or 116bp over the BCP-5 benchmark. Proceeds from the CLP tranche are marked for refinancing debt and for working capital. Banco de Chile managed the sale.