Security Completes Equity Offering, Advances Bond Plans

Grupo Security has completed a CLP57.27bn ($113m) equity rights offering, and now turns its sights to issuing up to UF3m ($136m) in the domestic bond market. The Chilean financial conglomerate is looking at an August sale, and will choose among four series with maturities up to 25 years, according to people following the process, with 5, 10 or 20-year maturities likely to emerge as options. Grupo Security should favor longer terms, LatinFinance understands. Proceeds from the bond sale will be used to help fund the UF6.2m-plus acquisition of Cruz del Sur agreed in March. Grupo Security through the acquisition picked up a portfolio of insurance, investment and brokerage businesses operating under the Cruz del Sur Brand from Grupo Angelini. It is also using proceeds from the equity capital raise. The group sold 301m shares at CLP190 each, it says. Holders had a right to 0.25 new shares per share held. IMTrust and BCI led the transaction.