Geo Brings Mini Huaso

Mexico’s Corporacion Geo has issued UF342,000 ($16m) in the Chilean market, bringing the first so-called Huaso sale since 2010 at a smaller size than had been expected. Acting under a $100m-equivalent shelf and initially announcing UF0.5m, the Mexican homebuilder priced the 2020 at 91.40 with a 6.50% coupon, to yield 7.8%, or government paper plus 540bp. Proceeds will be used for refinancing short term debt. Santander managed the deal, rated BBB/BBB on a national scale. Geo could await another issuance window and a better rate environment to add to its Chilean issuance, according to sources familiar with the company’s plans. It remains to be seen how the deal could affect other foreigners planning to tap Chile’s domestic market. Brazil’s Banco Pine is working on a 10-year UF6m program, and has an A minus Chilean-scale rating. Celfin and JPMorgan are advising. BTG Pactual has also been heard talking with investors about the possibility. Previously, only Mexico’s America Movil and Peru’s BCP had executed Huaso deals.