BancoEstado Meets Domestic Accounts

BancoEstado is planning a UF5m ($217.4m) 3.5%, 7-year bullet, with talk heard at about 110bp-120bp over comparable government bonds. Roadshows began Tuesday and pricing is expected January 16. Banco Estado is managing the sale. In 2010, the bank priced UF3m of local bonds at 112.38 with a coupon of 4.50% to yield 3.74%, or 32bp over the local central bank notes. Proceeds were to be used to finance the bank’s expansion plans. The bank itself led the sale.