Chilean Domestic Bonds Set to Price

Two of Chile’s larger corporates are expected to price domestic bonds this week, according to analysts and offering documents. Bottler Coca-Cola Polar is planning to issue up to UF2.5m ($160m) Wednesday, in as many as 3 series. A 2017 UF-denominated tranche with a 3-year grace period which begins amortizing in 2014 pays 3.0%. A similar peso-denominated piece comes with a coupon of 6.5%. A 2031 UF tranche with a 3-year grace period and amortization starting in 2021 meanwhile pays 4.0%. IM Trust and Penta Corredores de Bolsa are managing the transaction, rated AA minus on a national scale. Pulp and paper producer Celulosa Arauco plans to issue up to UF5m ($211m) in local 2018 and 2020 bonds, both paying 3.25% coupons. BBVA and Corpbanca are managing the sale, expected to happen Thursday.