- The issue included two series: one for UF 2 million, structured with a seven-year term and a demand that reached 2.9 times the offer, at a rate of 1.70%; and another for UF 5 million, with a 29-year term and a total demand of 1.7 times the offer, at a rate of 3.03%.
- Banchile Corredores de Bolsaand BBVA Corredora de Bolsa highlighted that this is the largest issue in almost two years, and the private corporate bond with the longest duration in the market.
Santiago, June 20, 2018. Quiñenco successfully completed the issue of two series of bonds in the local market for a total of UF 7,000,000, equivalent to approximately US$297 million.
At least 70% of the proceeds from the issue will be used for Quiñenco’s investment plan, both in the industries in which the Company already participates, and eventually in new sectors; and at least 10% to refinancing of liabilities.
The issue consisted of two series: series V, amounting to UF 2,000,000 with a seven-year term, and a total demand that reached 2.9 times the offer, at a rate of 1.70%, corresponding to a spread of 65 basis points as compared to the reference rate. On the other hand, series W amounted to UF 5,000,000 with a 29-year term, and a total demand of 1.7 times the offer, at a rate of 3.03%, corresponding to a spread of 72 basis points over the benchmark.
The operation was carried out by Banchile Corredores de Bolsa and BBVA Corredora de Bolsa, which commented that this was the largest issue in almost two years, and currently the private corporate bond with the longest term in the market.
Deneb Schiele, Head of Debt Capital Markets Chile at BBVA, pointed out that “series V obtained the lowest historical issue rate of the Chilean capitals market for corporate bonds with a five-year duration”, and he added that the issue’s results “show once again the confidence that investors have in the Group and its high management capacity”.
Andrés Trucco, Director at Banchile Citi Global Markets, highlighted that “this issue became the largest placement carried out recently” and that “currently series W is the private corporate bond with the longest duration in the local market, confirming the excellent perception the market has of the Quiñenco Group”.
Quiñenco is one of the largest and most diversified business conglomerates in Chile, with consolidated assets of approximately US$63.7 billion. It participates in leading companies of the financial, beverage and food, manufacturing, energy, transport and port services sectors that in all employ approximately 69 thousand people in Chile and abroad. For further information visit www.quinenco.cl.