© 2026 Arizent. All rights reserved.

Chile’s Santander back with public works deal

Published 2 Min Read

Chile’s Banco Santander is back with a domestic bond packing government risk. Sized at 1.27 million inflation-indexed units (UF) (US$30 million), the transaction will be backed by future payments to a road concessionaire from the Ministry of Public Works (MOP), an asset Santander introduced in January. “We’re aiming for the same structure,” said Maria Paz Hidalgo, the CEO of Santander Securitizadora. Like its predecessor, the upcoming transaction will be divvied up into different maturities to match the timing of the government’s payments.

At the time of inaugural placement, MOP faced bribery accusations against some of its officials. Institutional investors could have snubbed the deal, but in the end they bought in, mollified by the ministry’s impeccable record in making payments. Concerns of malfeasance are unlikely to dog the second transaction, as the scandal has died down in the last several weeks. More importantly, the outstanding deal has already pre-paid its shortest tranche, set to mature in February 2004. While maturities for each tranche are fixed in February of each year, the corresponding disbursement from MOP is timed for the preceding April, giving the trust ample time to make good on payments.

http://www.asreport.com

For reprint and licensing requests for this article, click here.

More From Asset Securitization Report

Prisons and bedpans beckon ABS players in Chile

It’s unlikely that crime and sickness have ever looked so good to Chilean ABS players, as a recent securitization of subsidies to build three prisons could infect others in the same sector and in hospitals. “It’s a structure that could be replicated,” said Cristian Fuenzalida, associate director of project finance in the Santiago office of […]

In Chile, home (sector) is where the heart is

Thanks to a trio of domestic deals since the end of July, Chile kept moving when activity ground to a halt elsewhere. Two transactions sprang from the housing sector, which would typically be a yawn in a market where real estate structures are firmly established and account for the lion’s share of outstanding securitization volume. […]

Santander Chile back with public works bond

Chile’s Banco Santander is back in the market with a bond packing government risk, according to a source familiar with the deal. Sized at 1.27 million inflation-indexed units (UF) (US$30 million), the transaction will be backed by future payments to a public works company from the Ministry of Public Works (MOP), an asset Santander introduced […]

Chilean government payment bond breezes into harsh political climate

Under the stormy cloud of a relentless political corruption scandal, Chile’s Santander Sociedad Securitizadora issued a bond packed with government risk in mid-January (see table). The domestic deal is backed by future payments to a public works company from the Ministry of Public Works (MOP), which has drawn a battery of bribery accusations since October. […]

Mexico’s Santander squeezes in a couple of deals before year-end

Mexico’s domestic securitization market kept up a brisk tone through the end of 2002, boding well for a country that is drawing increasing attention from bankers on the Street. As expected, Santander kept the market alive in late December. The Spanish bank came out with the second of three issues from a trust backed by […]