CorpBanca Prices Well-Bid FO

Chile’s CorpBanca has priced the international portion of its equity follow-on, raising CLP75bn ($158m) and seeing 4x demand. The acquisitive bank priced the equivalent of 12bn common shares at CLP6.25 each, according to people familiar with the transaction. The level represents a 5.9% discount to Tuesday’s CLP6.64 closing price. More than half of the shares sold were in the form of ADS. About 72% of the buyers were US-based, with 14% of the sale going to Europe, 8% to Chile and the remainder to other geographies. The deal included 1.35bn secondary shares sold by vice chairman Fernando Aguad. Tuesday’s international offer is to be followed by a Chilean rights offering at the same price, open today through February 15. The total shares sold should reach 47bn, raising some $660m. The controlling Saieh Group has waived its preemptive rights. Proceeds are to be used to help fund the $1.28bn purchase of Colombia’s Helm Bank announced in October. BTG Pactual managed 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. CorpBanca introduced itself to the international bond markets earlier this month, with an $800m 3.125% 2018 bond that came at a 3.240% yield.