Parque Arauco Bags UF Loan

Chile’s Parque Arauco has secured a 7-year $110m-equivalant syndicated loan denominated in the UF inflation-linked unit. The UF2.5m facility features a 2.5-year grace period and pays interest at UF plus 2.81%. The developer and operator of shopping malls plans to use proceeds to help finance the 2008 portion of its $1bn 2007-2009 development plan. Banco de Chile, Banco BCI, BBVA and BancoEstado are providing the financing. Arauco sold $160m in local UF-denominated bonds backed by a mortgage on its flagship property last month, also to finance its investment plan.