Santander Chile returns to the Swiss market with a successful transaction of CHF 150 million

Rhea-AI Summary

Santander Chile returns to the international debt market with a successful issuance of CHF 150 million Senior Notes, equivalent to US$167 million, due in 2027. This marks the bank's first operation in this segment since January 2020, reflecting strong investor demand despite market volatility. The issuance carried a competitive coupon of 0.33%, with a spread of 62 basis points above the Mid-Swap. With this issuance, the bank's total position in international markets reaches approximately CHF 737 million (US$822 million), enhancing its funding diversification strategy.

Positive

• Successful issuance of CHF 150 million Senior Notes, enhancing liquidity.
• First return to international debt markets since January 2020, indicating confidence.
• Competitive coupon rate of 0.33% enhances attractiveness to investors.

Negative

• None.

Despite the high volatility, the investor’s appetite for Santander Chile is still relevant. The issue in Swiss francs, equivalent to US$167 million, signifies the return of the Bank to international debt markets after more than one year.

SANTIAGO, Chile, June 09, 2021 (GLOBE NEWSWIRE) -- Santander Chile goes back to international markets and successfully issues CHF 150 million Senior Notes due in 2027 (equivalent to US$167 million), with a spread of 62 basis points above the Mid-Swap, which is equivalent to a coupon of 0.33%. The transaction was carried out with the advisory of Credit Suisse AG and Commerzbank AG.

This issue signifies a return of the Bank to the international public debt market since January 2020 and is the first operation of Santander Chile in Switzerland since August 2019. With this new instrument, Santander Chile’s position in this market is approximately CHF 737 million (or US$822 million), and is one of the most relevant geographies in terms of funding for the Bank.

For Emiliano Muratore, Chief Financial Officer of Santander, “this new issuance reflects the good position in the international scenario. Despite the current uncertainty the markets face, we were able to issue a relevant amount in a competitive market, allowing us to continue to diversify our investor base and funding sources.”

This press release is not an offer to acquire the bond or any other value. This press release is in conformation with Rule 135c of the Securities Act of 1933 of the United States.

About Banco Santander
Banco Santander Chile is the largest bank in the Chilean market in terms of loans and assets. As of March 31, 2021, the Bank had total assets of US$ 75.8 billion, loans net of provisions of US$ 46.6 billion, deposits of US$ 36.6 billion, and total equity of US$ 5.1 billion. The Bank has 346 branches and 10,391 employees. The BIS capital ratio as of March 31, 2021 was 15.4%, with a core capital ratio of 10.9%. Banco Santander Chile is one of the companies with the highest risk classifications in Latin America with an A1 rating 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 recent bond issuance did BSAC complete?

BSAC issued CHF 150 million Senior Notes due in 2027, equivalent to US$167 million.

When did Santander Chile last operate in international markets before this issuance?

Santander Chile last operated in international markets in January 2020.

What is the coupon rate for Santander Chile's recent bond issuance?

The coupon rate for the recent bond issuance is 0.33%.

How much total funding does BSAC have in international markets after this issuance?

After this issuance, BSAC's total position in international markets is approximately CHF 737 million (US$822 million).

What does this bond issuance signify for Santander Chile?

The bond issuance signifies Santander Chile's return to international debt markets and a strong position despite market volatility.