When Florida Governor Rick Scott visited Chile on a trade mission in May, he said that Florida is an \u201ceasy place to do business\u201d. By this he meant not only that corporate taxes are low, but also that around a quarter of the population is Hispanic, including a majority of the residents in Miami.<\/p>\n
One Chilean company that has been in Florida through thick and thin, and knows its advantages for Latin American entrepreneurs, is Chilean bank Banco de Cr\u00e9dito e Inversiones, or Bci.<\/span><\/p>\n Controlled by the Yarur family, it is Chile\u2019s third largest bank with assets of US$38 billion as of April this year, and the only one with a branch in the US \u2013 it opened its Miami branch in 1999.<\/p>\n \u201cBci has been in Miami for 14 years and in this time we have seen the increasing arrival of Chilean and Latin companies in the American market,\u201d said Lionel Olavarr\u00eda, chief executive of Bci.<\/span><\/p>\n But, in 2008, Florida\u2019s banking sector was crippled by the subprime mortgage crisis. Many small banks with bad real estate loans went under and those still standing are in recovery mode. In this scenario, with some owners still looking for an exit strategy, Bci made its move.<\/span><\/p>\n On May 24, while Governor Scott was in Chile, Bci announced an agreement with Spanish lender Bankia to buy Miami-based City National Bank of Florida (CNB) for US$882.8 million.<\/p>\n Analysts say the price \u2013 about 1.5 times its book value as of March 31, 2013 \u2013 reflects City National\u2019s solid performance, as a number of US banks up for sale have struggled to get even their book value due to the sluggish economic recovery.<\/p>\n The deal has been approved by Spanish authorities but is pending approval in both the United States and Chile. If it goes through, it will be the biggest ever investment by a Chilean company in the US.<\/p>\n \u201cStrategically we have been analyzing the Florida market for at least six years,\u201d said Olavarr\u00eda. \u201cWe know the market and we see possibilities to develop and expand our operation.\u201d<\/span><\/p>\n The opportunity arose last year when Bankia, saddled by billions of euros in property debts in Spain, accepted a bailout from the European Central Bank. As part of the deal, Bankia was required to offload its foreign assets, which included City National. Caja Madrid, which later merged with five other banks to form Bankia, had acquired CNB in 2008.<\/span><\/p>\n Bci jumped at the chance to scoop up one of Florida\u2019s best-capitalized banks with nearly U$5 billion in assets. Olvarr\u00eda says the opportunity was \u201ctremendously attractive\u201d owing to CNB\u2019s clean balance sheet after Bankia used part of a capital increase to pay off its debts.<\/span><\/p>\n The Chilean bank wasn\u2019t the only interested party, said Olvarr\u00eda. Banco do Brasil was initially in talks with Bankia, but when these fell through Bci stepped in and beat out other suitors including US, Canadian and Spanish banks. Goldman Sachs brokered the deal.<\/span><\/p>\n \u201cFor eight months we worked hard on this project including trips, analysis, due diligence and planning,\u201d said Olvarr\u00eda.<\/span><\/p>\n But the work paid off. Bci plans to finance the transaction partly through a US$400 million capital increase, and the rest by issuing debt at a later date.<\/span><\/p>\n \u201cThe timing is uncertain because much depends on having an idea of when we will have approval,\u201d said Olavarr\u00eda. \u201cEverything should starting moving towards the end of the year.\u201d<\/span><\/p>\n Once the deal closes, Bci plans to expand City National\u2019s services for small and mid-size companies in Florida, which could also benefit Chilean entrepreneurs, he said.<\/span><\/p>\n However, reaction to the deal has not all been positive. Bci\u2019s shares fell 4.65% on the day the deal was announced. Moody\u2019s also downgraded the bank\u2019s outlook to \u201cnegative\u201d due, it said, to CNB\u2019s commercial and residential real estate exposure and potentially higher credit costs.<\/span><\/p>\n But Moody\u2019s said the deal makes \u201cstrategic sense\u201d for Bci by increasing its geographic and client diversification outside Chile in a \u201cmature country\u201d like the US. It also said it would revise its outlook once details of the financing are confirmed.<\/span><\/p>\n Meanwhile, City National\u2019s solid growth is helping to silence naysayers. It posted strong financial results for the second quarter of 2013 driven by increased deposit growth and robust lending. <\/span><\/p>\n Like Bci, City National has also been recognized for its focus on customer service \u2013 it was named Business of the Year in 2013 by theSouth Florida Business Journal. \u201cWe believe that the culture of City National and Bci are very compatible,” said Olavarr\u00eda.<\/span><\/p>\n Bci has said it plans to keep the same management team. For his part, City National President and CEO Jorge Gonzalez said he expects Bci to continue to diversify the bank\u2019s loan portfolio, open more branches, and offer more services and products.<\/span><\/p>\n Barring another US economic crisis, the signs are positive that Bci\u2019s new beachhead in Florida will be successful. That\u2019s good news not just for Bci, but also for Chilean entrepreneurs looking to the Sunshine State as their gateway to the United States.<\/span><\/p>\n Julian Dowling is Editor of bUSiness CHILE<\/span><\/strong><\/p>\n <\/p>\n Cuando el gobernador de Florida, Rick Scott, visit\u00f3 Chile en una misi\u00f3n comercial en mayo, dijo que Florida es un \u201clugar f\u00e1cil para hacer negocios\u201d. Con esto quiso decir no solo que los impuestos corporativos son bajos, sino tambi\u00e9n que cerca de un cuarto de la poblaci\u00f3n es hispana, incluida la mayor\u00eda de los habitantes de Miami.<\/p>\n Una compa\u00f1\u00eda chilena que ha estado en Florida en las duras y en las maduras, y que conoce sus ventajas para los emprendedores latinoamericanos, es el chileno Banco de Cr\u00e9dito e Inversiones, o Bci.<\/span><\/p>\n Controlado por la familia Yarur, es el tercer mayor banco de Chile con US$38.000 millones en activos hasta abril de este a\u00f1o, y es el \u00fanico con una sucursal en Estados Unidos: inaugur\u00f3 su sucursal de Miami en el a\u00f1o 1999.<\/p>\n \u201cBci tiene 14 a\u00f1os de operaci\u00f3n en Miami y en este tiempo hemos visto la creciente llegada de empresas chilenas y latinas al mercado americano\u201d, sostiene Lionel Olavarr\u00eda, gerente general de Bci.<\/span><\/p>\n Sin embargo, en el 2008, el sector bancario de Florida se vio coartado por la crisis de la hipotecas subprime. Muchos bancos peque\u00f1os con cr\u00e9ditos inmobiliarios morosos quebraron y los que se mantuvieron en pie est\u00e1n en modo de recuperaci\u00f3n. Fue en este escenario, en el que algunos due\u00f1os a\u00fan est\u00e1n buscando una estrategia de salida, que Bci hizo su jugada.<\/span><\/p>\n El 24 de mayo, mientras el gobernador Scott estaba en Chile, Bci anunci\u00f3 un acuerdo con la entidad de financiamiento espa\u00f1ol Bankia para comprar City National Bank of Florida (CNB) de Miami por US$882,8 millones.<\/p>\n Analistas afirman que el precio -cerca de 1,5 veces su valor en libros al 31 de marzo de 2013- refleja el s\u00f3lido desempe\u00f1o de City National, dado que una serie de bancos estadounidense en venta han tenido dificultades para obtener siquiera su valor contable debido a la lenta recuperaci\u00f3n econ\u00f3mica estadounidense.<\/p>\n El acuerdo fue aprobado por las autoridades espa\u00f1olas, pero est\u00e1 a la espera de la aprobaci\u00f3n en Estados Unidos y Chile. Si prospera, ser\u00e1 la mayor inversi\u00f3n de la historia de una compa\u00f1\u00eda chilena en Estados Unidos.<\/p>\n \u201cEstrat\u00e9gicamente venimos analizando el mercado de Florida desde hace por lo menos 6 a\u00f1os\u201d, afirma Olavarr\u00eda. \u201cConocemos el mercado, y vemos posibilidades de desarrollo y consolidaci\u00f3n de nuestra operaci\u00f3n\u201d.<\/span><\/p>\n La oportunidad surgi\u00f3 el a\u00f1o pasado cuando Bankia, cargada de miles de millones de euros en deudas inmobiliarias en Espa\u00f1a, acept\u00f3 un rescate del Banco Central Europeo. Como parte del acuerdo, se exigi\u00f3 a Bankia deshacerse de sus activos extranjeros, entre los que inclu\u00eda City National. Caja Madrid, que posteriormente se fusion\u00f3 con otros cinco bancos para formar Bankia, hab\u00eda adquirido CNB en el 2008.<\/span><\/p>\n Bci salt\u00f3 ante la posibilidad de quedarse con uno de los bancos mejor capitalizados de Florida, con cerca de US$5.000 millones en activos. Olvarr\u00eda dice que la oportunidad era \u201ctremendamente atractiva\u201d gracias al balance limpio de CNB luego que Bankia empleara parte de un incremento de capital para pagar sus deudas.<\/span><\/p>\n El banco chileno no fue el \u00fanico interesado, comenta Olvarr\u00eda. Banco do Brasil estuvo inicialmente en negociaciones con Bankia, pero cuando estas fracasaron Bci dio un paso al frente y venci\u00f3 a otros postores, entre los que se inclu\u00edan bancos estadounidenses, canadienses y espa\u00f1oles. Goldman Sachs fue el operador del acuerdo.<\/span><\/p>\n \u201cDurante ochos meses se trabaj\u00f3 arduamente en este proyecto: viajes, an\u00e1lisis, due dilligence y planificaci\u00f3n\u201d, comenta Olvarr\u00eda.<\/span><\/p>\n Pero el esfuerzo vali\u00f3 la pena. Bci planea financiar la transacci\u00f3n en parte mediante un incremento de capital de US$400 millones y el monto restante con la emisi\u00f3n de deuda en una fecha posterior.<\/span><\/p>\n \u201cLos tiempos tampoco est\u00e1n definidos, porque dependen mucho de tener la seguridad o una idea de que vamos a tener la autorizaci\u00f3n\u201d, asevera Olavarr\u00eda. \u201cTodo deber\u00eda empezar a moverse hacia fines de a\u00f1o\u201d.<\/span><\/p>\n Una vez que el acuerdo se cierre, Bci planea expandir los servicios de City National a peque\u00f1as y medianas empresas de Florida, lo que tambi\u00e9n podr\u00eda beneficiar a emprendedores chilenos, afirma.<\/span><\/p>\n Sin embargo, la reacci\u00f3n al acuerdo no fue del todo positiva. Las acciones de Bci cayeron 4,65% el d\u00eda en que se anunci\u00f3 el acuerdo. Moody\u2019s adem\u00e1s rebaj\u00f3 la perspectiva del banco a \u201cnegativa\u201d debido a la exposici\u00f3n a bienes ra\u00edces comerciales y residenciales de CNB, y los costos potencialmente mayores de los cr\u00e9ditos, seg\u00fan se\u00f1al\u00f3.<\/span><\/p>\n Pero Moody\u2019s sostuvo que el acuerdo tiene \u201csentido estrat\u00e9gico\u201d para Bci al incrementar su diversificaci\u00f3n geogr\u00e1fica y de clientes fuera de Chile en un \u201cpa\u00eds maduro\u201d como Estados Unidos. Tambi\u00e9n indic\u00f3 que revisar\u00eda su perspectiva una vez que los detalles del financiamiento se confirmaran.<\/span><\/p>\n En tanto, el s\u00f3lido crecimiento de City National est\u00e1 ayudando a acallar a los detractores. El banco registr\u00f3 s\u00f3lidos resultados financieros en el segundo trimestre del 2013 impulsados por un mayor crecimiento de los dep\u00f3sitos y un s\u00f3lido otorgamiento de cr\u00e9ditos.<\/span><\/p>\n Como Bci, City National tambi\u00e9n ha sido reconocido por su enfoque en el servicio al cliente: el banco fue nombrado Empresa del A\u00f1o en 2013 por el diarioSouth Florida Business Journal. \u201cCreemos que la cultura de City National y Bci son muy compatibles”, asevera Olavarr\u00eda.<\/span><\/p>\n Bci ha manifestado que pretende mantener el mismo equipo de administraci\u00f3n. Por su parte, el director general y presidente ejecutivo de City National, Jorge Gonz\u00e1lez, se\u00f1al\u00f3 que espera que Bci contin\u00fae diversificando la cartera crediticia del banco, abriendo m\u00e1s sucursales y ofreciendo m\u00e1s servicios y productos.<\/span><\/p>\n A menos que haya otra crisis econ\u00f3mica en Estados Unidos, las se\u00f1ales son positivas respecto a que la nueva cabeza de puente de Bci en Florida ser\u00e1 exitosa. Esa es una buena noticia no solo para Bci, sino que tambi\u00e9n para los emprendedores chilenos que miran al estado del sol como su puerta de entrada a Estados Unidos.<\/span><\/p>\n Julian Dowling es editor de bUSiness CHILE<\/span><\/strong><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" <\/p>\n When Florida Governor Rick Scott visited Chile on a trade mission in May, he said that Florida is an \u201ceasy place to do business\u201d. By this he meant not only that corporate taxes are low, but also that around a quarter of the population is Hispanic, including a majority of the residents in Miami.<\/p>\n One Chilean company that has been in Florida through thick and thin, and knows its advantages for Latin American entrepreneurs, is Chilean bank Banco de Cr\u00e9dito e Inversiones, or Bci.<\/span><\/p>\n <\/p>\n When Florida Governor Rick Scott visited Chile on a trade mission in May, he said that Florida is an \u201ceasy place to do business\u201d. By this he meant not only that corporate taxes are low, but also that around a quarter of the population is Hispanic, including a majority of the residents in Miami.<\/p>\n One Chilean company that has been in Florida through thick and thin, and knows its advantages for Latin American entrepreneurs, is Chilean bank Banco de Cr\u00e9dito e Inversiones, or Bci.<\/span><\/p>\n Cuando el gobernador de Florida, Rick Scott, visit\u00f3 Chile en una misi\u00f3n comercial en mayo, dijo que Florida es un \u201clugar f\u00e1cil para hacer negocios\u201d. Con esto quiso decir no solo que los impuestos corporativos son bajos, sino tambi\u00e9n que cerca de un cuarto de la poblaci\u00f3n es hispana, incluida la mayor\u00eda de los habitantes de Miami.<\/p>\n <\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"template":"","news_tax":[],"user_type":[],"class_list":["post-5054","news","type-news","status-publish","hentry"],"acf":[],"yoast_head":"\n