BTG Pactual Chile SpA issued on Jan. 16 a subordinated bond for 2.5 million UF, equivalent to about US$102 million.
Demand for the 10-year bond reached 1.65x the amount offered. The rate for the placement was 2.49% above the UF rate, equating to a spread of 96 points.
Proceeds will be used to speed up bank lending and for general corporate purposes in the investment banking, stockbroker, asset management and private banking sectors.
A UF, or unidad de fomento, is Chile's inflation-indexed unit. As of Jan. 16, it was worth 27,559.56 Chilean pesos, according to the country's SII tax agency.
As of Jan. 16, US$1 was equivalent to 671.20 Chilean pesos.