Roundup: Banco Falabella bond, brokerage cuts Helm Bank PT, new exec at HSBC

- Thursday, September 8, 2011

Roundup: Banco Falabella bond, brokerage cuts Helm Bank PT, new exec at HSBC

Colombian lender Banco Falabella has sold 150bn pesos (US$83.6mn) worth of bonds in two tranches. The first was for 70bn pesos and was tied to the IBR banking reference index plus 2.13%, and the second series was tied to the consumer price index (IPC) plus 4.04%.

Investor demand for the issue hit 194bn pesos. Proceeds from the issue will be used to finance the bank's projected growth in consumer and credit cards loans, the bank said in a press release.

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Brokerage Bolsa y Renta has cut its target price on Colombian lender Helm Bank to 390 pesos from 420 pesos, as it believes the bank will be unable to increase its payout ratio for 2011-16 at the pace its previous model assumed.

Helm Bank's new target price implies a 12x estimated 2011 P/E (price/earnings), a 30% discount compared to the country's largest banks - Bancolombia (NYSE: CIB), Banco de Bogotá and Davivienda - which Bolsa y Renta sees as reasonable given that the bank keeps delivering poor profitability and its stock still underperforms those of its peers.

The brokerage also maintained its hold recommendation on Helm Bank, one of Colombia's top 10 lenders.

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HSBC's (NYSE: HBC) global banking and markets division has appointed Mónica Duwe as managing director and head of global banking at its Chilean unit, the bank said in a press release.

Duwe will be responsible for providing major companies and institutions based in Chile, or those interested in expanding to Chile, products and services including M&A advisory, equity and debt capital markets, leverage and acquisition financing, and project and export finance.

Duwe joins HSBC from BNP Paribas.