April 16, 2014.- Banco Santander Chile launched at 9:30am Tokyo time today a new bond issue, this time in the Tokyo Pro-Bond Market (TPBM) for an amount of JPY$27.3 billion. This issue was just the second globally in the TPBM and the first from Latin America. Additionally, it was the largest issue by a Chilean firm in Japan to date.
This bond demonstrated the growing interest for Chilean paper from Japanese investors. Demand came 100% from Japanese investors, including policy banks, local asset managers, Shinkin Banks and insurance companies. Given the high demand from a diverse pool of investors, the bond was divided into 3 tranches: (i) a 3 year FRN of JPY$ 2 billion priced at a coupon of 0.72% equivalent to Libor3m+90 basis points, (ii) a 3 FRN year of JPY$ 6.6 billion priced at a rate of 3-month JPY-LIBOR-BBA + 55 basis points, equivalent to Libor 3M + 90 basis points and (iii) a 5 year fixed note for JPY$18.7 billion at a rate of 0.97%, equivalent to Libor 3M + 121 basis points.
According to Pedro Murua, Manager of Structured Finance at the Bank: "We are very excited with this landmark transaction that opens the door for us to Japanese investors. The size and maturity of this issue reflects the positive view Japanese investors have on Chile and Santander Chile. This bond clearly demonstrates our strategy of diversifying our funding base. This year Santander Chile has issued in Japan, Chile, Australia, Switzerland and the U.S."
The joint lead managers for this transaction were: Daiwa Securities, JP Morgan Securities and Mizuho.
Banco Santander Chile, at year-end 2013 was Chile's largest bank by assets (US$51.4bn) and had a core capital ratio of 10.6%. Santander Chile is also one of the highest rated entities in the region with an aa3 rating from Moody's, A+ from Fitch and A from Standard and Poor's. Banco Santander Chile trades in the local Chilean stock markets (Bsantander) and the NYSE (BSAC). The majority shareholder of the Bank is Grupo Santander that controls 67% of the Bank.
CONTACT INFORMATION
Robert Moreno
Manager, Investor Relations Department
Banco Santander Chile
Bandera 140 Piso 19
Santiago, Chile
Tel: (562) 2320-8284
Fax: (562) 671-6554
Email: rmorenoh@santander.cl
Website: www.santander.cl