BanBif places S/120 million in CDNs, reflecting confidence in the Peruvian market.

BanBif, one of the key players in the Peruvian financial system, has taken a significant step in the realm of securities issuance by placing Negotiable Deposit Certificates (CDNs) totaling S/120 million. This operation not only reflects investors' confidence in the entity but also positions itself as one of the most successful issuances of the last decade in the local market, a fact that undoubtedly attracts the attention of analysts and economists. The demand for these CDNs was remarkable, reaching a total amount of S/206 million, which means that the offer was oversubscribed by 1.71 times. This figure clearly indicates the strong interest from investors in BanBif's assets, a fact highlighted by Fernando Pinglo, the Division Manager of Treasury and Capital Markets at the entity. The placement rate was set at 5.21875%, with a spread of less than 22 basis points, demonstrating effective management in structuring the issuance. This movement occurs in an economic context where interest rates and consumer confidence are recurring themes in financial analyses. According to Pinglo, the successful placement of CDNs not only underscores BanBif's solid position in the capital markets but also highlights investors' appetite for such emissions. This interest can be interpreted as a positive sign for the financial system as a whole, suggesting stability and confidence in Peruvian institutions. The role of the agents involved in the placement is also worth mentioning. Credicorp SAB acted as the placement agent, while CAVALI ICLV S.A. was responsible for the settlement of the operations. The work of these entities is crucial to ensure transparency and effectiveness in the securities placement process, emphasizing the importance of a robust financial infrastructure in the country. The risk ratings granted by agencies such as Moody's Local and Pacific Credit Rating also provide a frame of reference regarding the quality of the issued securities. Moody's rated BanBif with an "A" as an entity and "ML-1" for the CDNs, while Pacific Credit Rating assigned an "A+" rating to the entity and "PE-1+" to the instruments. These ratings are vital for increasing investor confidence and reflect BanBif's financial solidity. It is also interesting to observe the profile of the investors who acquired the CDNs. The investors include a variety of institutional clients, such as pension funds (AFPs), mutual funds, public entities, insurance companies, and other financial institutions. This broad spectrum of investors not only diversifies BanBif's capital base but also ensures greater stability in the investment flow. In terms of activity in the capital markets, BanBif has shown remarkable performance regarding issuances. Throughout the year, it has issued a total of S/360 million in Negotiable Deposit Certificates and S/19.5 million in Subordinated Bonds. By 2023, the entity had already completed issuances of S/320 million in CDNs and S/130 million in Subordinated Bonds, highlighting its active strategy in financing operations and expanding the business. The funds obtained from these issuances are primarily aimed at financing the bank's own operations, which implies that BanBif is not only looking to strengthen its capital but also to expand its services and improve its offerings to clients. This forward-looking approach indicates that the entity is positioning itself to seize opportunities in a dynamic economic environment. The recent placement of CDNs is not only a victory for BanBif but can also be seen as a barometer of the health of the financial system in Peru. If investors are willing to bet on BanBif's issuances, it is likely that there are also opportunities in other sectors that could follow this trend. In conclusion, the placement of S/120 million in CDNs by BanBif is a milestone that not only underscores confidence in the institution but also reflects a broader context of stability and appetite for investments in the country. As the Peruvian market continues to evolve, it will be interesting to see how BanBif and other institutions adapt and capitalize on these opportunities in a financial landscape that, while challenging, presents multiple possibilities for growth and investment.