BancoEstado placed two five year bank bonds for a total of UF 5 million, equivalent to US$ 200 million, with a duration of four years. The operation reached a placement rate of 2.14% equivalent to a 100 basis point spread over the risk free instrument.
The financial institution informed that the main objective of this operation was to capture long term resources to finance the commercial development of the Bank.
The bonds placed have AAA risk classification (ICR) and AAA risk classification (Fitch), and pay half-yearly interest, with a single block capital amortisation on their maturity date.
The operation was carried out at the Santiago Stock Exchange in the Dutch auction mode, through BancoEstado S.A. Corredores de Bolsa placement agents, with great interest from corporate investors, with a demand 3.6 times higher than 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.