Chilean Retailer Eyes Issue

SMU has been authorized to issue up to UF2m ($94m) in 5-year bonds, with an interest rate of 5.20%, according to regulatory filings. The Chilean retail company has hired EuroAmerica as bookrunner on the issue, rated A/A minus on a national scale. SMU’s operations include the Supermercados Unimarc chain, and it claims approximately 20.6% market share in Chile’s supermarket sector. In 2011, SMU issued UF5m in its first bond in the domestic market. A UF2m 3.40% 2016 tranche priced to yield 3.62%. A UF3m 3.80% 2033 tranche priced to yield 3.97%. Celfin and Santander managed that transaction.