Banco Santander Chile Issues US$200 Million in Subordinated Bonds.NEW YORK--(BUSINESS WIRE)--Oct. 27, 1998-- First Latin American Private Sector Issue Since New Bout of Global Instability Banco Santander Chile today issued US$200 million in SEC-registered seven year subordinated bonds with a coupon of 6.50%, maturing on November 1, 2005. The issue was launched at a price of 99.524 to yield 6.585%, a spread of 210 basis points over the November 2008 5 7/8 U.S. Treasury. The issue is rated Aaa by Moody's Investor Services and AAA by Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index , and is insured by MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association Insurance Corporation. Banco Santander Chile's subordinated bond ratings are Baa1/A-, the same ratings as Chile. J.P. Morgan acted as bookrunner on the issue with Merrill Lynch and Santander Investment as co-managers. Mauricio Larrain, Vice Chairman of Banco Santander Chile commented, "A solid economy such as Chile's, the strong position of the Bank in the market, and the support of Grupo Santander International, has enabled us to issue the first corporate bond with an insurance guarantee." "This is the first Chilean issue, indeed the first private sector issue in Latin America since the Russian devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. unleashed renewed turmoil in global markets," noted Daniel Benton, Vice President, J.P. Morgan Securities, Inc. "Investors reacted positively, reaffirming their confidence in Chile. The issue was oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. and placed with a broad range of investors, mainly in the U.S." Banco Santander Chile (NYSE NYSE See: New York Stock Exchange :BSB BSB Backstreet Boys BSB Bayerische Staatsbibliothek BSB British Superbikes (motorcycle racing series) BSB Bachelor of Science in Business BSB Bandar Seri Begawan (capital of Brunei) ) provides banking services to local, regional, and international clients in Chile. It is part of Banco Santander's (NYSE:STD (Subscriber Trunk Dialing) Long distance dialing outside of the U.S. that does not require operator intervention. STD prefix codes are required and billing is based on call units, which are a fixed amount of money in the currency of that country. ) Latin America franchise. Banco Santander is the leading Spanish financial group with US$234 billion in funds under management at the end of the second quarter of 1998, and US$181 billion in balance sheet assets. Banco Santander is the largest international bank in Latin America and is present in 34 countries, including all the major financial centers with offices throughout Europe, the United States and Asia. |
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