Arauco Issues Bond in Chile

Celulosa Arauco has issued UF5m ($232.6m) in the Chilean local bond market. The paper company priced a 2033 bond at 101.29 with a 4.00% coupon to yield 3.88%, or government bonds plus 110bp, according to DCM sources. The deal saw more than 2x demand. IMTrust led the sale, rated AA on a national scale. About 70% of proceeds were marked to cover investment financing and 30% to repay liabilities of Arauco and its affiliates.