We are pleased to announce that Cencosud SA has successfully agreed to the terms for a new issuance of an international bond totaling US$ 650 million, with a 7-year term at a rate of 5.95%. The initial demand for this bond exceeded US$ 3.2 billion, and the formal issuance is scheduled for next Tuesday, May 28. This transaction attracted 230 orders and is aimed at prepaying an existing international bond as well as the debt associated with the acquisition of The Fresh Market in the United States.
Specifically, this transaction will enable Cencosud to fully repay the outstanding principal of US$ 524 million on the senior bond due in 2025 and to prepay an additional US$ 175 million in other financing.
“We are very pleased with the market’s response to this operation, which achieved the lowest risk premium in Cencosud’s history and saw demand several times the amount of the issuance. This is a strong vote of confidence in the direction of the Company,” said Rodrigo Larraín, Corporate General Manager of Cencosud.
Andrés Neely, Corporate Manager of Administration and Finance of Cencosud, added, “This refinancing operation will enhance the Company’s liquidity and debt maturity profile, thereby continuing to strengthen our financial position to support our business plans.”
The bonds have been rated Baa3 by Moody’s and BBB by Fitch Ratings.
Cencosud SA
The information contained herein does not constitute an offer to sell securities in the United States. No securities may be offered or sold in the United States unless they are properly registered under the United States Securities Act of 1933, as amended, or are exempt from registration. Any public offering of securities in the United States will be conducted by means of a prospectus containing detailed and accurate information about the company, its management, and its financial statements. Please note that this information does not constitute a solicitation for money, securities, or any other type of consideration, and any such consideration sent in response to this information will not be accepted.
