Banco Internacional to sell US$44.7mn in subordinated bonds next month

Wednesday, March 16, 2011

Chile's Banco Internacional will issue subordinated bonds for 1mn UFs - Chile's inflation-linked unit (21.6bn pesos, or US$44.7mn) - in the first week of April to help finance its growth plan, local financial daily Diario Financiero reported.

"The [bond] issuance will be destined 100% for the bank's growth, mainly in the corporate segment. In that segment we have a 1.2% market share, while on average it's slightly less than 1%. We're looking to be close to 3% in the near future," the daily reported general manager Juan Enrique Vilajuana as saying.

The bond issue will have a 21-year maturity and will be handled by local financial services firm EuroAmerica. Recently, the bank announced a 40bn-peso capital increase for growth in the retail segment.

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Vilajuana said he expects the bank to grow lending 25-30% this year on the back of new branches, bigger commercial capacity due to new technology and personnel, and the recent launch of its retail banking business. The banking sector is expected to see loans growing by around 15%.

Banco Internacional is owned by the Navarro family, controllers of Santiago-based systems integrator Sonda, with operations across Latin America.