Masisa Dispels Doubts

Chilean furniture and interior design firm Masisa priced the first bond to test local pension fund appetite since the Chilean government allowed them to invest more abroad. Juan Ignacio Montes at IM Trust, which led the deal, says Masisa’s bond proved pension funds remain supportive of local issues. The $88m inflation-linked three-tranche bond priced late Thursday and racked up $209.4m in demand. The $17.6m five-year F and G series bonds priced at 3.73% and 3.72%, roughly 80bp over Chilean central bank notes, and the $52.8m 21-year H notes priced at 4.64%, or 114bp over. Pension funds, insurance companies, mutual funds, banks, stockbrokers and asset managers were the buyers.