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News 2014

BancoEstado successfully placed bank and subordinated bonds

Subgerencia de Comunicaciones

, Jun 19, 2014. 03:00

The lowest rate for a Subordinate Bond in the past 15 years: 3.08% at 30 years.

BancoEstado successfully placed series K3 and series M2 bonds for a total of UF 3 million and UF 2 million respectively, equivalent to US$ 220 million. The series K3 bank bond has a remaining term of 5 years and a duration of 4.2 years, with a yield of 2.40%, while the series M2 subordinated bond  has a remaining term of 30 years and a duration of 19.3 years, and recorded a yield of 3.08%.

The placements reached a spread of 70 risk free base points for the bank bond and 78 base points for the subordinated bond, once again giving evidence of the trust that institutional investors have in BancoEstado.

The financial institution informed that the objective of this placement operation was to capture long term resources to go with the development of its clients, in addition to strengthening the net worth of BancoEstado.

The K3 bonds placed have  AAA (ICR) and AAA (Fitch) ratings, while the M2 series bonds have AA+ (ICR) and AA (Fitch) ratings. Both bonds have semestral coupon and capital amortization is paid in a single installment on the date of maturity.

The operation was carried out with the Santiago Stock Exchange as a Dutch Auction, through BancoEstado S.A. Corredores de Bolsa placement agency.

BancoEstado is extremely stable and solvent and has one of the best risk classifications in the market, which enables it to offer investors profitable safe and reliable financial instruments.