Chile’s BancoEstado said it has raised CHF100m ($100m) in 2027 bonds, becoming the first Latin American commercial bank to raise Swiss francs over a 10-year maturity.
Credit Suisse priced the paper at par, with a 0.575% coupon, equal to 39bp over mid-swaps, a banker familiar with the transaction told LatinFinance.
The A3/AA-/A+ rated Chilean bank priced the notes inside the similarly-rated Caribbean Development Bank’s 12-year CHF note, which was spotted at 47bp over mid-swaps on Wednesday. The CDB sold the 2028 bond in June last year.
Longer-tenored bonds in Swiss francs are rare, according to the banker, owing to Europe’s negative interest rate environment. For LatAm issuers, the sweet spot for CHF-denominated notes come between three and five years.
The US Federal Reserve on Wednesday also raised its benchmark interest rate by 25bp to a range of 0.75% and 1%, marking the second hike in three months.