Arauco Planting Domestic Issue

Chilean forestry products firm Celulosa Arauco is set to sell today up to UF4m ($144m) in local bonds denominated in pesos and the UF inflation-linked unit. Arauco is looking to complete the remaining UF4m from its UF10m global bond program, through which it reopened local debt markets in November with the sale of UF6m in 21-year and 6-year notes. It can place any combination of 4.5% 2014 peso denominated notes, 2.25% 2014 UF-denominated bonds, or 4.25% 2030 UF bonds. The issuer will use proceeds to refinance debt and for general corporate purposes. IM Trust is managing the sale, rated AA on a national scale. Arauco is controlled by fuel and forestry conglomerate Empresas Copec, and a grower and producer of wood pulp, sawn timber and wood panels operating in Chile, Argentina, Brazil and Uruguay. Fellow wood products maker CMPC is also planning to sell bonds in the domestic market, having filed for up to UF10m in 10 and 30-year bonds in a AA+ rated sale through JPMorgan and Santander.