CorpBanca Set for Follow-on

Chile’s CorpBanca is set price a follow-on in New York today, representing the international portion of a process expected to eventually top $600m-equivalent. The acquisitive Chilean bank is offering 12bn common shares internationally, represented by 8m ADS, which would raise $168m based on Monday’s $21.05 ADS closing price. The shares in the cross-border sale include 1.35bn secondary common shares to be sold by vice chairman Fernando Aguad. The international offer is to be followed by a Chilean rights offering that could bring the shares sold to the 47bn share limit, raising $660m in total. The controlling Saieh Group has waived its preemptive rights. Proceeds are to be used to help fund the $1.28bn purchase of Helm Bank in Colombia announced in October. BTG Pactual is managing the sale, with Celfin and CorpBanca as co-managers. At the time of the Helm announcement, the IFC agreed to buy 5% of the bank, a stake to be included in the upcoming rights offering and estimated at the time to be $225m.