By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., April 26 – Banco del Estado de Chile (BancoEstado) sold $600 million of 7.95% additional tier 1 subordinated notes (Baa3/BBB-) at par on Thursday, according to information from a market source.
The notes come with five years of call protection.
The initial interest rate resets to Treasuries plus 322.8 basis points on May 2, 2029, which is also the first call date.
Price talk was in the 8¼% area.
BNP Paribas, HSBC, JPMorgan, BofA Securities, Citigroup, Credit Agricole CIB and Goldman Sachs are the bookrunners.
The state-owned financial services company is based in Santiago, Chile.
| Issuer: | Banco del Estado de Chile (BancoEstado)
|
| Amount: | $600 million
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| Issue: | Additional tier 1 subordinated notes
|
| Maturity: | Perpetual
|
| Bookrunners: | BNP Paribas, HSBC, JPMorgan, BofA Securities, Citigroup, Credit Agricole CIB and Goldman Sachs
|
| Coupon: | 7.95% initially; resets to Treasuries plus 322.8 bps on May 2, 2029
|
| Price: | Par
|
| Yield: | 7.95%
|
| Call features: | After five years on May 2, 2029
|
| Pricing date: | April 25
|
| Ratings: | Moody's: Baa3
|
| S&P: BBB-
|
| Price talk: | 8¼% area
|
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