SMU Issues Debut CLP Bond

Chilean retail company SMU has issued UF5m ($200m) in a dual tranche deal, its first bond in the domestic market. The transaction was 30% oversubscribed, according to bankers on the deal. A UF2m 5-year tranche priced at 99.01 with 3.40% coupon, to yield 3.62%. A 21-year, UF3m tranche priced at 98.04 with a 3.80% coupon to yield 3.97%. Pension funds and insurance companies were the main investors. SMU plans to use proceeds to re-finance debt and general corporate purposes. Celfin and Santander Chile managed the transaction, rated A/A+ on a national scale. Controlled by Alvaro Saieh, SMU’s operations include the Supermercados Unimarc chain, and it claims approximately 20.6% market share in the supermarket sector. The retailer has also registered with regulators for an eventual IPO.