BCI Looks to Markets to Fund US Buy

Banco de Credito e Inversiones (BCI) will look to issue shares or bonds after agreeing Friday to buy City National Bank of Florida in the US from Spain’s Bankia for $883m, it says. The Chilean bank calls the deal a “natural step in increasing business abroad,” and notes that it should close in the first quarter of 2014. City has $4.7bn in total assets, compared to BCI’s CLP17.57trn ($35.91bn). The buyer does not give any specifics as to the financing plans, but it has demonstrated access to the USD markets, most recently with a $500m 2023 bond sale in February, through Citi and JPMorgan. LXG Capital, Landmark Capital and Whitecap advised BCI, and Goldman Sachs advised Bankia on Friday’s deal.