Equities

Credicorp Capital has an active participation in the Santiago Stock Exchange, consistently placing amongst the main stockbrokers in the variable income market in Chile. Amongst its main clients, there are domestic and foreign institutional investors, as well as high net worth individual investors.

Some of the main operations it has performed in past years we may highlight (2011-2015):

IPO’s

  • Inversiones La Construcción USD 468 million (2012)
  • Echeverría Izquierdo USD 87 million (2012)
  • Cruz Blanca Salud USD 236 million (2011)
  • AquaChile USD 373 million (2011)

Capital Increase

  • Techpack USD 150 million (2014)
  • LATAM USD 941 million (2013-2014)
  • Grupo Security USD 191 million (2011-2013)
  • Corpbanca USD 570 million (2012)

Stock

  • Molymet USD 75 million (2014)
  • Grupo Security USD 16 million (2014)
  • Falabella USD 274 million (2012)
  • Essal USD 88 million (2012)
  • Essbio-Esval USD 564 million (2011)
  • San Pedro USD 25 million (2012)
  • Ferreyros USD 24 million (2012)
  • Camanchaca USD 293 million (2011)
  • Aguas Andinas USD 984 million (2011)
  • Molyment USD 284 million (2011)

OPAs Public Takeover Bid

  • Grünenthal for Andrómaco USD 290 million (2013)
  • Agrosuper for Sopraval USD 36 million (2011)
  • Walmart for D&S USD 1.983 million (2009)

Our main Domestic Investment Instruments

  • Purchase and sale of shares
  • Time purchase of shares
  • Custody of shares
  • Purchase of shares above index
  • Purchase of preferred stock
  • Financial Intermediation Instruments

Our main international investment instruments

  • Purchase and sale of options
  • Purchase and sale of futures
  • Currency
  • Hedge funds
  • Day-trading strategies

Other Services

  • Short sales
  • Simultaneous (Term operations)
  • ADR Arbitrage
  • Covenants
Risks and Product Description

Main risks Price risk: It is defined as the value loss due to a negative fluctuation in the instrument market prices.

Interest rate risk: It is defined as the variation in the value of an instrument caused by fluctuations in interest rates. If the interest rate increases the bond value decreases.

Liquidity risk: It is defined as the contingency that the organization may not sell (purchase), or otherwise suffer excessive losses (expenses) due to the disposal of assets at unusual and significant discounts (premiums). We may also define it as the ability to operate any instrument has, i.e., how easily an asset may be sold or bought before its maturity date?

Issuer risk: It is defined as the chance the borrower or issuer of paper or debt will default its financial engagements in the term stated at the beginning and especially at the maturity of the operation.

VARIABLE INCOME

A) Shares. It is a security which represents a part or a quota of a corporation’s equity. It grants its legitimate holder the condition of an associate and sometimes comes with the right to vote (depending on the type of share). An associate owns X% of a corporation according to the number of shares owned (expressed in money) once the equity of such corporation or company is divided.
Shares have Price, Liquidity, and Issuer Risk.

B) Options. A financial option is a derivative financial instrument established in a contract whereby the buyer has the right, but not the obligation to, purchase or sell goods or values (the underlying asset, which may be shares, bonds, stock indexes, etc.) at a predetermined price (strike price), up to an established date (maturity).
Options have Price, Rate, Liquidity and Issuer Risk.

C) Futures. Financial futures are a forward contract which establishes the purchase or sale of a given amount of an underlying instrument at an established price and predetermined future date.
Futures have Price, Rate, Liquidity and Issuer Risk.

D) Simultaneous Operations. They are buying-selling at maturity date operations. The buyer of a simultaneous operation buys bonds/liabilities at maturity date and sells those obligations at maturity date to the same entity after a period. At the time of the agreement, both the “going” buying/selling as well as the “return” selling/buying operation is closed.
Simultaneous operations have Price, Liquidity, and Issuer Risk.

E) Covenants. It is an agreement whereby a security holder sells them to an investor with the commitment of repurchase at an agreed price and a determined date.
Covenants have Liquidity and Issuer Risk.

“The information regarding products does not at all entail the confirmation or guarantee concerning profitability, future performance, or loss or profit certainty, they may experience in time”.