Reuters logo
Chile CorpBanca issues $300 mln in local bonds to fund growth
November 27, 2012 / 3:50 PM / 5 years ago

Chile CorpBanca issues $300 mln in local bonds to fund growth

* Demand from local investors said strong

* CorpGroup, CorpBanca’s parent, buying Colombia’s Helm Bank

SANTIAGO, Nov 27 (Reuters) - Chilean bank CorpBanca has issued about $300 million in 24- and 28-year bonds on the local market to bolster growth plans at home and in Colombia, CorpBanca said on Tuesday.

CorpGroup, CorpBanca’s parent company, signed a deal last month to buy up to 100 percent of the shares of Colombia’s Helm Bank for around $1.3 billion. Helm would then be merged with CorpBanca Colombia to create Colombia’s fifth-largest bank.

CorpBanca had planned a bond and share issue to fund the purchase.

“Even though the external markets offer good liquidity conditions ... strong demand by local investors prompted us to issue (the bonds) wholly in Chile,” said Pedro Silva, head of CorpBanca’s finance division.

The statement did not include the bonds’ yields.

The Chilean bank’s chief executive, Fernando Massu, told Reuters in an interview last month that the bond issue could be done locally if surprisingly eager domestic investors offer better prices than do those abroad.

Earlier this month, shareholders of CorpBanca approved a $600 million share issue to help finance the acquisition of Helm Bank and also to allow the World Bank’s private investment arm, International Finance Corp, to take a $225 million stake in CorpBanca.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below