Cencosud Joins Chilean Issuer Line

Chilean retailer Cencosud is heard planning 10-year dollar benchmark. The company has been assigned a BBB minus rating by Fitch and a Baa3 rating by Moody’s. The Chilean retailer has hired JPMorgan, Deutsche Bank and Santander for a deal expected next year, according to DCM bankers. Though Cencosud is a frequent issuer in Chile’s domestic market, a dollar deal would be a debut in that format, according to Dealogic. The Fitch rating comes from Cencosud’s “dominant position in the retail business in Chile, a strong market position in Peru, Argentina, northeast Brazil, and a growing presence in Colombia,” the agency says in a report, noting a diversified business model including retail, real estate and finance, growing cash flow and improving liquidity. If conditions are adequate, Chileans could account for a decent part of new issuance next year. Paper producer CMPC and bank BCI have held road shows in the last few months. BCI pulled a dollar deal in September, but is heard to be considering a return to the dollar markets or a possible local issuance. Banco de Chile is also heard considering a dollar deal.