Banco Internacional board gives US$100mn capital raise nod

Friday, February 9, 2018

The board of Chilean lender Banco Internacional approved a capital raise of 60bn pesos (US$100mn).

The bank, in a regulatory filing with watchdog CMF, said it would issue 1.375bn new shares.

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In a statement last month announcing the raise was planned, the bank, a subsidiary of Chilean financial holding Inversiones La Construcción (ILC), said it would use proceeds to help fund its growth plans.

Banco Internacional is among Chile's small to medium-sized lenders. For 2017 it posted net income of 12.1bn pesos. The biggest player in the profit stakes was Banco de Chile, posting 576bn pesos.

The bank has grown its loan portfolio at a pace of more than 20% annually since ILC became a stakeholder two years ago, Banco Internacional president James Callahan was quoted as saying by local paper El Mercurio.

Callahan also said that, as the bank has grown, levels of capitalization have fallen, adding that the increase was partly planned with the country's general banking bill in mind. Under the draft legislation, which has been approved by the lower house, banks will be required to comply Basel III standards.

Banco Internacional's loan portfolio stood at 1.41tn pesos at the end of December, while total assets stood at 1.65tn pesos. Total liabilities were 1.55tn pesos.