Cencosud Set for Bond

Cencosud is set to price a new 2021 bond as soon as today, having given guidance of UST plus 237.5bp area, according to investors. The Chilean retailer, making its dollar debut, is expected to issue up to $1bn, and was heard having built a book of about $2bn late Tuesday. There were no indications of a global-peso tranche, a possibility heard considered earlier in its roadshow. Cencosud completed investor meetings Tuesday, managed by Deutsche, JPMorgan and Santander. “This is a story on domestic growth in LatAm, and specifically entry into Brazil,” says an East Coast-based EM investor eyeing the deal. There are no direct comps, investors say, though some point to other recent Chilean triple Bs, such as Baa2/BBB/BBB+ Arauco. The pulp maker got UST plus 245bp in September on a $400m 10-year, and now trades at around UST plus 155bp.