With the aim of further strengthening its capital base, the Chilean bank Bci returned to the local perpetual bond market. The firm issued its second AT1 bond in the international market.
According to a statement, the issuance raised 500 million dollars in fresh capital and achieved an issuance rate of 7.5%.
The bond is part of Bci’s strategy to optimize its capital structure and allows the bank to meet Basel III requirements a year ahead of the deadline set by the Financial Market Commission (CMF), they highlighted.
Earlier this year, the financial firm entered the perpetual bond market. In early February, it made its first issuance, also for 500 million dollars.
For Javier Moraga, manager of Bci’s Investments and Finance division, the outcome of this transaction “reflects international investors’ confidence and understanding of the bank’s development strategy.”
He also noted that the issuance strengthens the bank’s diversification of funding sources across the United States, Europe, and Asia.
In this regard, the executive highlighted the role of the team in charge of the launch, stating that they “positioned Bci in a very strong way for the implementation of new capital regulations in the Chilean market,” as noted in the press release.
For Gabriela Huerta
For Fórmate a Fondo