Cencosud Prints First 20-Year Fixed-Rate

Chilean retailer Cencosud has issued a CLP54bn ($115m) 2031, marking the first 20-year fixed-rate bond to come from a corporate in the local market, according to a banker on the deal. The bonds priced at 95.91 with a 7.00% coupon to yield 7.40% after generating over a CLP100bn in demand mostly among pension funds, insurance companies, mutual funds and private banks. Tenors on domestic fixed-rate paper issuance typically don’t stretch out beyond 10 years, with issuers using UF-denominated bonds to reach the longer points along the curve. Proceeds will be used for investment and refinancing purposes. Celfin and EuroAmerica were the bookrunners on the deal, rated AA on a national scale. Cencosud made its dollar debut in January, when it raised $750m in 2021 bonds.