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News 2014

BancoEstado completed successful placement of Bonds

Subgerencia de Comunicaciones

, May 27, 2014. 03:00

Placement of Series K1 and K2 bank bonds for UF 3 million and UF 2 million (total aprox. 216 USD million) respectively.

BancoEstado placed Series K1 and K2 bonds for UF 3 million four year bond and UF 2 million 29 year bond respectively.  The first tranch (K1)  was priced to a yield 2.00%, while the second tranch (K2) with a yield of 2.99%.

The Bank considered that both  these placement operations were extremely successful, reaching a 55 base point spread over the risk-free instrument for the K1 series bond and 60 base points for the K2 series bond.

This once again shows how institutional investors trust BancoEstado, with a demand equivalent to 4 times the order book for the K1 series bond, and 3.4 times the order book for its K2 counterpart.

The financial institution reported that the main objective of this placement operation is to capture long term resources to contribute to the development of its clients. In this sense, it has excellent conditions of stability and solvency, in addition to having one of the best risk classifications in the financial system, which enables it to offer its investors profitable, safe and reliable financial services.

The bonds ratings are AAA (ICR) and AAA (Fitch), with semestral interest payments and a capital amortization which is paid up in a single installment on their due date.