CCU Approves Equity Raise

Compania Cervecerias Unidas (CCU) has approved a CLP340bn ($680m) equity capital raise, it says, to help fund expansion plans. It plans to issue 51m shares and does not indicate details for timing. The new funds are an important move for the Chilean beverage company, say people familiar with its plans, and will allow it to finance growth, including increasing production. CCU plans to invest CLP1.35bn through 2020, and is also preparing to tap the domestic bond markets. In April, CCU registered up to UF10m ($454m) in domestic bonds, a shelf to be used in the event of non-organic growth needs, according to a person familiar with the registration. The brewer has a UF2m 10-year line, a UF5m 10-year line, and a UF10m 30-year line, which can be used in combination but cannot exceed UF10m total.