Corpbanca Issues Domestic Subordinated Bonds

Corpbanca has issued UF6.63m ($315m) in subordinated bonds in Chile’s local market. It priced a UF1.13m 4.00% coupon 24-year tranche at a 4.28% yield, and a UF5.5m 4.00% coupon 27-year tranche at a yield of 4.48%, according to industry sources. In October, it was heard planning a subordinated bond sale in the international markets, as part of the funding for its $1.28bn acquisition of Helm Bank. Chile’s longer tenors and the ability to avoid international funding costs were among the reasons for choosing the Chilean market for its issuance, says a person familiar with the company’s plans. Corpbanca managed the deal itself.