Friday, 7 June 2019

LATAM Airlines Group announces successful bond issue in Chile

 LATAM Airlines Group,  Latin America's leading airline group, successfully issued a bond in Chile's capital market as part of a Dutch auction, a first for LATAM on the Santiago Stock exchange, Bolsa de Comercio de Santiago.

The transaction was achieved with attractive conditions and a risk rating of "BBB+" by Feller-Rate and Fitch for the approved line. On this occasion, it was placed under Series E for 5.0 million Unidades de Fomento (UF) over 10 years, with capital payment due on DATE (bullet) and a monthly interest payment at a placement rate of 2.73%, representing a spread of 201 basis points over the reference rate, running 67 basis points during the auction regarding the subscription rate.

The transaction was completed in a context of favourable market conditions, taking advantage of lower interest rates and high liquidity, in addition to strong interest from institutional clients. As a result, the Series E was received with surplus -demand, approximately 2.0 times greater, mainly consisting of pension funds and mutual funds among others.

Credicorp Capital and Santander were the financial advisers and placing agents for the transaction.

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