By Tali Rackner
Norfolk, Va., Oct. 12 – Parque Arauco SA placed a total of 5 million unidades de fomento (about $200 million) in two tranches, equivalent to 19% of the current financial liabilities of the company, according to a press release.
The UF 2 million 21-year bond priced at a 2.48% yield with a 105 basis point spread over the central bank’s benchmark rate. The bond has a 10-year grace period. This is the lowest yield for a Chilean corporate bond issuance for bonds with a duration greater than 10 years, excluding banks and state-owned companies, the release said.
The UF 3 million seven-year bond priced at a 1.73% yield with an 82 bps spread over the central bank’s benchmark rate. The bond has a three-year grace period. This also had a historic low yield for Chilean corporate issuances, excluding banks and state-owned companies, with a duration greater than four years, according to Parque.
Proceeds will be used to refinance bank loans.
Parque Arauco is a Santiago, Chile-based shopping center developer.
| Issuer: | Parque Arauco SA
|
| Amount: | UF 5 million ($200 million)
|
| Announcement date: | Oct. 12
|
|
|
| 21-year bond
|
| Amount: | UF 2 million
|
| Issue: | 21-year bond
|
| Maturity: | 2037
|
| Yield: | 2.48%
|
| Spread: | Central bank benchmark rate plus 105 bps
|
|
|
| Seven-year bond
|
| Amount: | UF 3 million
|
| Issue: | Seven-year bond
|
| Maturity: | 2023
|
| Yield: | 1.73%
|
| Spread: | Central bank benchmark rate plus 82 bps
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
