BCI Prices Inside Expectations

Chile’s Banco de Credito e Inversiones (BCI) has priced a new $500m senior unsecured 2023 bond as investors filled a $1.8bn book. The A1/A bank’s second-ever international bond priced at 99.275 with a 4.000% coupon to yield 4.089%, or UST+212.5bp, tight to 225bp-237.5bp guidance. The bonds were trading up 0.25 points late Wednesday, traders say. Lead managers say the deal priced 50bp-55bp wide of where a new 10-year bond would price from government-owned lender Banco del Estado de Chile (Aa3/A+/A+). The deal was allocated to approximately 160 accounts with more than 75% from the US, about 20% from Europe and a sliver from LatAm. BCI plans to use proceeds for general corporate purposes. Citi, HSBC and JPMorgan managed the deal. BCI sold a $600m 2017 bonds in November in its international debut, getting $3bn in orders and landing a 3.125% yield, through Citi and JPMorgan. BCI reported consolidated assets of $37.6bn and shareholders’ equity of $3bn as of year-end. It was the country’s third largest privately owned bank and the system’s fourth largest, with 12.8% market share in loans and 12.5% in deposits.