Cencosud will place an international bond for US$ 650 million

Cencosud will place an international bond for US$ 650 million
Cencosud will place an international bond for US$ 650 million

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The negotiations reported by Bloomberg last week bore fruit and Cencosud returns to the debt market after seven years, announcing this Wednesday that it has agreed to the terms of a new international placement.

The retailer will place a bond for US$650 million for seven years and an interest rate of 5.95%. The operation will materialize on Tuesday, May 28, after having received an initial demand of more than US$ 3.2 billionaccording to an official statement.

“We are very happy with the market response in this operation, which reached the lowest risk premium in the history of Cencosud and a demand several times the amount of the placement. It is a great sign of confidence in the direction of the Company,” published the general manager of Cencosud, Rodrigo Larraín.

The proceeds will be used to pay the entire outstanding capital of US$ 524 million of the bond senior of Cencosud maturing in 2025, and to prepay other financing for US$ 175 million that includes costs associated with the acquisition of The Fresh Market in the United States.

Andrés Neely, Manager of Administration and Finance, highlighted that “this refinancing operation will allow the Company to improve its liquidity and the maturity profile of its debt, and thus continue strengthening the financial position for the development of its business plans.”

The bonds were classified with a “Baa3” note by Moody’s and “BBB” by Fitch Ratings.

 
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