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News 2014

BancoEstado carried out a successful placement of bank bonds

Subgerencia de Comunicaciones

, Jul 21, 2014. 03:00

This is the lowest placement rate for a bank bond: 2.90%. The bonds have been given AAA risk classification (ICR) and AAA risk classification (Fitch)
This is the lowest placement rate for a bank bond: 2.90%. The bonds have been given AAA risk classification (ICR) and AAA risk classification (Fitch)

BancoEstado carried out the successful placement of Series K bank bonds for U.F. 2 million, equivalent to US$ 95 million. This instrument, with a maturity of 30 years and a duration of 19.1 years, obtained a placement rate of 2.90%, which gave the instrument a risk-free spread of 70 basis points, which shows the degree to which institutional investors have confidence in BancoEstado.

 

The financial institution informed that the main objective of this placement is to attract long term resources for the development of Chileans, thus reaffirming its role as a public institution that encourages financial inclusion and access to credit.

 

The bonds placed have AAA classification risk (ICR) and AAA classification risk (Fitch), and pay half-yearly interest, with a single block  capital amortization on their maturity date.

 

The bond was placed in the Santiago Stock Exchange through a Dutch Auction mode, managed by BancoEstado S.A. Corredores de Bolsa; on this opportunity, demand trebled the issue

 

BancoEstado offers excellent conditions of stability, solvency and one of the best risk classifications in the financial system, which enables it to offer investors profitable, safe and reliable financial instruments.