Falabella Prices COP Deal

Chilean retailer Falabella sold COP100bn ($51m) in a 3-tranche bond yesterday, with demand exceeding COP124bn, according to Laura Ramirez, DCM director at Correval, one of the banks managing the sale. The first tranche, due in 2 years, pays a coupon of 1.65% over DTF. The second, due in 3 years pays 2.00% over DTF. The third tranche, due in 2 years, pays a fixed 6.30%.The issue is rated AAA by Fitch and proceeds will go to repay some existing debt and finance capex, adds Ramirez. IMTrust structured the notes, and in addition to Correval, Bancolombia, Corredores Asociados, Interbolsa and Proyectar handled the sale. Separately, Chilean holding company Dersa has raised CLP120bn ($236m) through the sale of a 2.1% stake of Falabella in Chile’s local markets. Dersa, Falabella’s largest shareholder, reduces its ownership in the company to 20.2% with the sale. Demand reached CLP300bn, according to the bolsa, with foreign investors accounting for 45% of the purchase and local pension funds buying 34%. Falabella shares closed at CLP2,496.