Santander Chile returns to the Swiss market with a successful five-year transaction

Rhea-AI Summary

Santander Chile (NYSE: BSAC) has successfully issued a bond worth CHF 190 million (approximately US $205 million) in the public market, demonstrating its strong creditworthiness despite local market uncertainties. The five-year bond, with a competitive coupon rate of 0.2975% and a spread of 60 basis points over the reference rate, reflects robust investor interest. With this issuance, Santander's total position in the Swiss franc market has risen to CHF 925 million (around US $1 billion), now comprising 30% of its total foreign debt. This marks the bank's second issuance in 2021.

Positive

• Successful issuance of CHF 190 million bond indicates strong demand and high investor confidence.
• Competitive coupon rate of 0.2975% reflects favorable market conditions for Santander Chile.
• Total Swiss franc market position increased to CHF 925 million, enhancing financing diversification.

Negative

• None.

In a challenging environment, Santander Chile confirms its excellent position with international investors. The bank issued CHF 190 million over five years in the public market

SANTIAGO, Chile, Oct. 12, 2021 (GLOBE NEWSWIRE) -- Santander Chile (NYSE: BSAC) (SSE: BSANTANDER) returns to the international market and successfully issues a bond in Swiss francs for CHF 190 million (equivalent to US $ 205 million) for a five-year term, achieving a spread of 60 basis points over the reference rate, which is equivalent to a coupon of 0.2975%.

This issue once again confirms the excellent reception of Santander Chile's credit in foreign markets, at times of local uncertainty. This transaction received great interest and demand from investors, and represents the second in this market during the year, after the placement of CHF 150 million last June. With this new instrument, Santander Chile's position in the Swiss franc market is around CHF 925 million (about US $ 1 billion), and it is consolidated as the second most relevant market within the financing diversification strategy of the Bank, reaching around 30% of total foreign debt.

For Emiliano Muratore, Santander's Chief Financial Officer, “this new issue reflects the good position that the Bank maintains on the international scene. Despite the current uncertainty faced by the markets, we managed to place a relevant amount in a competitive public market, benefitting from the advantages and allowing us to continue the diversification of our investor base and financing sources.”

About Banco Santander

Banco Santander Chile is the largest bank in the Chilean market. As of June 30, 2021, it has total assets of $ 58,813 billion, net loans of provisions of $ 33,719 billion, deposits of $ 29,478 billion, and total equity of $ 3,418 billion. In addition, it has 344 branches, 1,257 ATMs and 10,240 employees. The BIS capital ratio as of June 2021 was 14.7%, with a basic capital ratio of 10.1%. Furthermore, Banco Santander Chile is one of the companies with the best risk ratings in Latin America with a rating of A1 from Moody’s and A from Standard and Poor’s.

CONTACT INFORMATION
Robert Moreno
Investor Relations
Banco Santander Chile
Bandera 140, Floor 20
Santiago, Chile
Tel: (562) 2320-8284
Email: irelations@santander.cl
Website: www.santander.cl

FAQ

What was the total amount of the bond issued by Santander Chile on October 12, 2021?

Santander Chile issued a bond worth CHF 190 million (approximately US $205 million) on October 12, 2021.

What is the coupon rate of the bond issued by Santander Chile?

The bond issued by Santander Chile has a coupon rate of 0.2975%.

How much does Santander Chile now have in the Swiss franc market?

After the bond issuance, Santander Chile's total position in the Swiss franc market is around CHF 925 million, equivalent to about US $1 billion.

What percentage of total foreign debt does Santander Chile's Swiss franc position represent?

Santander Chile's position in the Swiss franc market represents approximately 30% of its total foreign debt.