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Chile’s Parque Arauco raises 6 million UF through issue of two bonds
By Marisa Wong
Madison, Wis., April 23 – Parque Arauco SA said it has raised 6 million unidades de fomento, or roughly $240 million, through the issuance of new bonds.
This issuance is the largest in the history of the company and was the result of a two-year plan to strengthen Parque Arauco’s financial position, according to a press release.
The financial strengthening process was completed last week, with the issuance of two series of local bonds, a UF plus 220 basis points five-year bullet bond for UF 2 million (about $80 million) and a UF plus 330 bps 25-year amortizing bond for UF 4 million (about $160 million).
Both bonds were issued at historically low rates for a Chilean corporate bond, the release noted.
In 2013 the company began preparing for a capital increase, which was carried out during the first quarter of 2014 and subscribed to by more than 95% of shareholders.
Later in 2014 the company started a process to lift all five banking and bond mortgages linked to its most important mall, Parque Arauco Kennedy. The process ended successfully with the completion of a bond tender and bond exchange, which offered unsecured series K bonds, with a slight premium in the interest rate, in exchange for secured series H bonds.
Due to the capital increase, lifting of the mortgages and the company’s strong operational results, in 2014 Parque Arauco improved its local ratings by two levels, to AA- from A.
Parque Arauco said it recently announced a new investment plan valued at $730 million, which will include developments in Chile, Peru and Colombia.
The shopping mall company is based in Santiago, Chile.
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