Banco Falabella Set to Kick off Chile Bond Spree

Banco Falabella has concluded investor meetings in Chile, Peru and Colombia, and is looking to sell up to UF5m ($215m) in bonds in the Chilean market Wednesday, the first of what could be a string of debt sales in that country. Indeed, in contrast to international bond markets, domestic funding sources in Chile, Colombia and Mexico are increasingly being tapped by corporate borrowers. The lending arm of the Andean retailer is eyeing 21-year bonds paying a 3.85% coupon and amortizing in the final 5 years, and 7-year bonds paying 3.40% and amortizing in years 5, 6 and 7. IMTrust is managing the sale rated AA/AA minus on a national scale. Quinenco’s LQ Inversiones Financieras also wants to issue as soon as next week, and Santiago’s Metro is expected to follow.