Santander Chile issues $270 million in Japan bonds

SANTIAGO, April 16 Wed Apr 16, 2014 10:31am EDT

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SANTIAGO, April 16 (Reuters) - Banco Santander Chile issued 27.3 billion yen, or $270 million, in bonds in Japan's Tokyo Pro-Bond Market on Wednesday, the first issue from Latin America in that market.

The issue falls in line with the strategy of the bank and other corporates in Chile of diversifying their funding base.

It was the largest debt issue to date of any Chilean firm in Japan, said Santander Chile, one of the South American country's largest banks.

"The size and maturity of this issue reflects the positive view Japanese investors have on Chile and Santander Chile," said Pedro Murua, the bank's head of structured finance, in a statement.

The bond was divided into three tranches, two three-year floating rate notes and a five-year fixed.

There was high demand from a varied pool of investors including policy banks, local asset managers, "Shinkin" banks and insurance companies, Santander Chile said.

Joint lead managers were Daiwa Securities, JP Morgan Securites and Mizuho.

On Tuesday Moody's assigned an Aa3 rating to the proposed issue.

Santander Chile has also issued debt this year domestically, and in Australia, Switzerland and the United States.

Its three-year $115 million bond in Australia in March was the first issuance of its kind by a Latin American bank.

($1 = 101.6450 Japanese Yen) (Reporting by Anthony Esposito; Editing by Meredith Mazzilli)

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