Banco de Chile Holder May Prepay Debt, El Mercurio Reports
Stock Chart for Sociedad Matriz Banco de Chile (SMCHILEA)
SM-Chile SA, the holding company for Chile’s second-largest lender, may prepay by 17 years its subordinated debt with the central bank, El Mercurio reported.
SM-Chile may pay the last of its annual installments to the central bank on 2019 based on Banco de Chile’s earnings growth prospects, the Santiago-based newspaper reported, citing Javier Pizarro, an analyst at Larrain Vial SA.
SM-Chile was formed in 1996 to hold Banco de Chile’s subordinated debt with the central bank, which is related to the rescue of Chile’s banking system in 1982, El Mercurio reported. The debt currently stands at 40.8 million unidades de fomento, Chile’s inflation-adjusted accounting unit, or $1.79 billion, after SM-Chile paid 4.8 million UF in 2010, El Mercurio said.
An official at Nexos, Banco de Chile’s external communications representative, said the bank wouldn’t comment on the subject. Larrain Vial’s Pizarro didn’t answer phone calls.
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