Banco Consorcio increases capital by US$50.3mn through share issue

Tuesday, January 11, 2011

Chile's Banco Consorcio announced a capital increase of 25.1bn pesos (US$50.3mn) by issuing 14,600 new shares, each at a price of 80 UF - the country's inflation-linked unit - to be bought by its parent company, local financial services holding Consorcio Financiero, the bank said in a filing with securities and insurance regulator SVS.

The bank seeks to expand its operations in Chile and plans to use the money to set up a derivatives platform, as well as a retail lending channel and a corporate lending platform designed for midsize companies, a press release from the company reads.

Banco Consorcio is one of the smallest players in the industry, with reported earnings of 8.07bn pesos in November and a lending portfolio of 101bn pesos at end-November, according to the latest figures from banking regulator SBIF.

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