Falabella Set for Domestic Tap

Chilean retailer Falabella is preparing to sell Wednesday up to $284m-equivalent in domestic bonds denominated in CLP and the UF inflation-indexed unit, according to a company finance official. Falabella can place up to UF8m-equivalent using any combination of 5.3% 2015 peso bonds, 2.8% 2016 UF bonds, 3.8% 2021 UF bonds or 4% 2033 UF bonds. The exact amounts will depend on demand and be determined during an auction process. Banchile and Larrain Vial are managing the sale, rated AA on a national scale. Proceeds will go to the early refinancing of a bond due in December. At the beginning of this month, the retailer’s CMR Falabella credit service unit sold CLP90bn ($155m) in 2015 bonds backed by credit card receivables, priced to yield 6.29%. Falabella is also in the process of preparing a COP150bn issue in Colombia for CMR and a Chilean UF4m offer for its Mall Plaza unit.