Chilean Mall Operator Sells Bonds

Chile’s Parque Arauco has issued CLP69.27bn ($158m) in bonds denominated in UF, the local inflation-linked unit. The shopping mall developer and operator placed CLP24.74bn in 2018 with a 3.7% coupon at 103.82 to yield 2.97%. It also priced CLP44.53bn in 2029 bonds with a coupon of 4.30% at 105.79 to yield 3.79%. Demand for the issue reached CLP72.94bn. The bonds are backed by a mortgage on Arauco’s flagship Terrenas Parque Arauco mall in Santiago. Proceeds will be used to finance the company’s $1bn 2007-2009 investment plan, and refinance existing debt. Arauco operates shopping malls in Chile, Argentina and Peru.