Article: Banco Santander Chile Commences Exchange Offer.

* Banco Santander Chile today commenced an offer to exchange its outstanding 7% subordinated notes due 2007 for new subordinated notes due 2012 and a US dollar amount in cash. * Up to US$300,000,000 of Banco Santander Chile's new notes will be available for the voluntary exchange offer. * The purpose of the exchange offer is to extend the maturity profile of the Bank's subordinated indebtedness and thus allow the Bank to extend the time that its subordinated debt will qualify under Chilean banking regulations as regulatory capital. * The new notes are rated A3 by Moody's and BBB+ by Standard and Poor's.

Banco Santander Chile today commenced an offer to ...

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