Boston Securitizadora issued securitized bonds

Boston Securitizadora S.A. carried out the first issuance of securitized bonds gathering the formation of its separate estate number one, for an amount equivalent to UF 512,000 (approximately US$ 12.5 million), of which UF 400,000 corresponded to Senior Series A; UF 74,000 to Senior Series B and UF 38,000 to Subordinated Series C. The rating of AA was assigned to the Senior Series by Feller Rate and Humphreys, while Subordinated Series C was rated as C. The bonds shall extend for a term of 19.5 or 19.75 years, according to the series.

This issuance was carried out pursuant to a program for the issuance of bonds registered in the Chilean Securities Registry of Superintendence of Securities and Insurance, dated July 10, 2003.

The securitized assets that support this bond issuance consist of direct housing lease contracts originated by Concreces Leasing S.A., entity which also assumed the primary administration of such assets. Concreces Leasing S.A. previously participated as originator of the assets incorporated in three previous issuances of securitized debt instruments.

BankBoston, N.A. in Chile acts as custodian of the assets and also as payer to the debt instruments.

Banco de Chile acted as representative of the bond holders.

The structure is protected in the form of asset overcollateralization supporting the Separate Estate, which acquires both the lease contracts with the option to purchase that respective debtors entered into and the houses related to such contracts. In this case the prior partial stock of the assets is also introduced as a way of making the business financial model more efficient.

The deal closed on August 26, 2003, with the successful placement of the totality of the securitized bonds.

Boston Securizadora S.A. was advised on the legal structure of the bond issuance by Grasty Quintana Majlis & Cía., through partner Octavio Bofill and associate Ana María Yuri.

Concreces Leasing S.A. was advised by its in-house counsel, Edmundo Ramírez.

Banco de Chile was advised by its in-house counsel, Patricio Diez.