SMU to Issue Debut Bond

Chilean retail company SMU plans to issue its first bond in the domestic market in the second week of June, according to a banker on the deal. The company is expected to issue UF5m ($200m) in 5-year and 21-year bonds. The proceeds will be used to refinance debt and for general corporate purposes. Celfin and Santander Chile are managing the transaction, rated A/A+ on a national scale. The retailer has also registered with securities regulators, Celfin says in a report, the first step required should the company wish to go public. Controlled by Alvaro Saieh, SMU has approximately 20.6% market share in the supermarket sector and generated US$3.2bn in sales in 2010. The company could not be reached for comment. Celfin and Santander Chile led “non-deal” meetings for SMU with equity investors earlier this year, according to a source at one of the banks, who adds that the meetings were not in connection with any future sale.