SANTIAGO, Nov 3 (Reuters) - Banco de Credito del Peru placed $107 million worth of bonds with a yield of 3.97 percent in the Chilean domestic market on Tuesday, with proceeds to be used for the bank's investments and operations, according to a market source.

With the bond placement, BCP (CRE.LM: Quote, Profile, Research) has become the first Peruvian firm to place debt in Chile's market and the second in Latin America after Mexico's America Movil (AMXL.MX: Quote, Profile, Research).

BCP, Peru's biggest bank, through Larrain Vial and BCI brokerages placed 2.7 million UF due in five years and yielding 3.97 percent.

The UF is a monetary measurement that readjusts daily based on current monthly inflation and is denominated in Chilean pesos.

BCP's bonds have a "AA-" rating from Fitch Ratings and "A" from Feller-Rate. BCP is an affiliate of the financial holding Credicorp (BAP.LM: Quote, Profile, Research) (BAP.N: Quote, Profile, Research). (1 UF = 20,977.08 Chilean pesos) (US 1 = 531 Chilean pesos) (Reporting by Antonio de la Jara; Writing by Aaron Nelsen, editing by Gerald E. McCormick)