Deals of the YEar awards
Chile’s Banco de Crédito e Inversiones, or BCI, achieved several milestones for the bank and for Chile’s banking sector as a whole.
BCI returned to the debt capital markets in October 2021 after a four- year absence, placing $500 million in 144A Reg S bonds yielding 2.875% and 3.081%.
The 10-year senior unsecured notes achieved the lowest yield for a bond of that duration issued by a Chilean financial institution, as well the lowest ever yield in international markets for a private financial institution in Latin America. It also achieved the lowest spread to sovereign ever by a Chilean financial institution, at 42bps over Chile’s sovereign curve.
The issuance compared well with BCI’s previous deals as well. BofA Securities, which acted as joint bookrunner on the deal alongside J.P. Morgan and HSBC, says that the yield was 57bps lower than the previous 144A bond placed by BCI, in 2017. At that time, the spread was 70bps over Chile’s sovereign.
The deal was also noteworthy for its execution: Initial Price Thoughts were in the T+170bps area, but following steady demand and large orders from quality investors, BCI was ultimately able to price at the tight end of guidance range at T + 155bps, according to BofA. The transaction was rated A2 by Moody's and A- by S&P.
In the wake of the deal, BCI has not let up in its forays into the international debt capital markets. In January 2022, it issued a CHF200mn green bond in Switzerland. And in July, it became the first Chilean bank to join the IDB’s Green Bond Transparency Platform, which aims to support the harmonization and standardization of issuance reporting. The bank last year also jointed the Nasdaq Sustainable Bond Network (NSBN). LF
Joint Bookrunners: BofA; HSBC; J.P. Morgan
Issuer's Legal Advisors: Simpson Thacher
Underwriters' Legal Advisors: Carey & Cia; Cleary Gottlieb; Dentons Rencoret
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