Falabella Goes Long in Local DCM

Falabella has sold $228m equivalent in inflation-indexed bonds on Chile’s domestic market. The Chilean retailer priced UF3.50m ($123m) in 4.00% of 2033 bonds at 94.77 to yield 4.40%, and UF3.00m in 2.80% 2015 bonds at 97.92 to yield 3.29%. Proceeds will go to the early refinancing of a bond due in December. Banchile and Larrain Vial managed the sale, rated AA on a national scale. Falabella’s CMR Falabella credit services unit sold April 2 CLP90bn ($155m) in 2015 bonds backed by credit card receivables. The CMR unit is also planning a domestic placement in Colombia of up to COP100bn, with the timing remaining to be set. Falabella’s Mall Plaza unit is expected to place a Chilean domestic issue of up to UF4m later this year.