FOR IMMEDIATE RELEASE [LOGO OF CORP BANCA]
CORP BANCA ISSUES 10-YEAR BONDS IN CHILE
Santiago, Chile, June 13, 2006 - CORP BANCA (NYSE: BCA, Santiago: CORPBANCA), a
Chilean financial institution offering a wide variety of corporate and retail
financial products and services, announced the closing of its issuance and sale
of U.F. 2,000,000 (approximately U.S.$67 million) aggregate principal amount of
bonds due 2016. U.F. (unidad de fomento) is a Chilean currency unit that
periodically adjusts to reflect inflation in Chile. The deal settled through the
Santiago Stock Exchange.
The purpose of this bond issuance was to finance Corp Banca's expected growth in
mortgage loans in 2006. The bonds, which settled on June 7, were structured by
Corp Banca Asesorias Financieras S.A. and placed by Corp Banca Corredores de
Bolsa S.A. The bonds were offered through the Santiago Stock Exchange during a
ten-minute open auction, but the entire U.F. 2,000,000 principal amount of the
issuance was sold one minute after the auction began. By the end of the auction,
the bond had been three times oversubscribed.
The bonds were sold at a spread of 112 basis points over the five-year
U.F.-denominated bonds issued by Chile's Central Bank, or the five-year BCU.
Recently, similarly structured bonds in the Chilean market have been priced at a
spread of more than 130 basis points over their respective benchmarks.
In May 2005, Corp Banca closed the largest bond issue placed in the Chilean
market when it raised U.F. 8 million in a single sale, priced at a spread of 93
basis points over the five-year BCU. The proceeds of the 2005 bond were applied
to finance Corp Banca's growth in mortgage loans in 2004 and 2005.
Christian Schiessler, the head of Corp Banca's International and Treasury
Division, commented: "This bond issue is related to the continued growth in our
mortgage loan portfolio, which includes both residential and commercial
mortgages. Mortgage lending has been a key growth area for Corp Banca. In 2005
and 2006, Corp Banca's growth rate in this area has outpaced the average for the
Chilean banking sector for such loans and our market share in this area has been
expanding since 2003. Furthermore, the attractive terms that our bond issue
achieved demonstrate Corp Banca's enhanced credibility and standing among
investors."
www.corpbanca.cl Huerfanos 1072, Santiago, Chile 1
Phone: 56 (2) 687 8000
FOR IMMEDIATE RELEASE [LOGO OF CORP BANCA]
The main characteristics of the bond issue are:
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Principal amount U.F. 2,000,000
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Series Series J
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Currency Unidad de Fomento or U.F. As of June 7,
one U.F. was equal to 18,119,03 Chilean
pesos and U.S.$33.8.
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Maturity 10 years
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Early redemption Not applicable/non callable
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Interest accrual From June 1, 2006
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Interest rate 4.0% per annum, compounded
semi-annually, equal to 1.9804%
semi-annually
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Interest periods Semi-annual
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Amortization Semi-annual, equal
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Feller-Rate Risk Rating Agency (1)(2) AA-
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Fitch Ratings (2) AA-
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1 Feller-Rate Risk Rating Agency is a Chilean rating agency
2 These ratings refer to the specific bond issue and not to Corp Banca in
general
ABOUT CORP BANCA:
Corp Banca is a Chilean financial institution offering a wide variety of
corporate and retail financial products and services. Its shares are listed on
the New York Stock Exchange (NYSE: BCA) and on the Santiago Stock Exchange
(Santiago: CORPBANCA).
FORWARD-LOOKING STATEMENTS:
This press release contains forward looking statements that involve known and
unknown risks, uncertainties and other factors, which may cause the actual
results, performance or achievements of Corp Banca to be materially different
from the results, performance or achievements expressed or implied by these
forward looking statements.
www.corpbanca.cl Huerfanos 1072, Santiago, Chile 2
Phone: 56 (2) 687 8000
FOR IMMEDIATE RELEASE [LOGO OF CORP BANCA]
Contact: Raul Rubel B.
Investor Relations
Corp Banca
Tel. (56 - 2) 687-6075
Santiago, Chile
raul.rubel@corpbanca.cl
Nicolas Bornozis
President
Capital Link, Inc.
Tel. (212) 661-7566
New York, USA
nbornozis@capitallink.com
www.corpbanca.cl Huerfanos 1072, Santiago, Chile 3
Phone: 56 (2) 687 8000