After a two-day roadshow in different cities of Switzerland, Banco Santander Chile has issued a new bond in that country. The operation is for a total amount of 300 millions Swiss francs (about US$ 330 million) at a price of CHF Mid swap +68 bps for a 3.5 years term. This translates into a cost of UF +2.87% (equivalent to BCU +93 bps, lowering than the cost of local funding for that term) under Swiss Law.
The transaction was announced in Zurich, with a minimum amount of CHF 200 millions. The order book was oversubscribed, with demand anchored by several Swiss banks, investment funds, private banks and other investment managers, which endorsed the increase in the amount placed. This time, the underwriters were UBS and BNP Paribas banks.
"The very favorable reception of this bond in the Swiss market reflects the good perception that foreign investors have of Chilean risk, the local banks and in particular of Banco Santander Chile", said Pedro Murua, Structured Finance Manager of Banco Santander Chile. The operation would be the largest bond in the history of the Swiss market from a Latin American bank issuer.
Santander Brasil has issued as well bonds for USD$2,5 billion in the past days.