Cencosud S.A. announced on April 2 the successful placement of two new bond series in the local market, raising a total of UF 12,500,000 (Unidades de Fomento). The company said this issuance demonstrates strong investor confidence and supports its long-term financial strategy.
The transaction is significant as it reflects robust demand from local institutional investors and marks the first time Cencosud has issued a corporate bond with a 29-year maturity. The proceeds from these bonds will be used for debt refinancing purposes.
The details provided by Cencosud indicate that Series V (BCENC-V) consists of UF 7,000,000 with bullet maturity on March 15, 2033, an annual coupon rate of 3.00%, and yield to maturity at 2.75%. Series X (BCENC-X) includes UF 5,500,000 maturing on March 15, 2055 with an annual coupon rate of 3.30% and yield to maturity at 2.99%. The company reported that the seven-year tranche was oversubscribed by a factor of 1.8 times while the twenty-nine-year tranche was oversubscribed by a factor of 1.7 times.
“This transaction marks a new milestone for Cencosud in the local market, reaffirming the Chilean market’s confidence in the Company. We placed bonds under highly competitive conditions and, for the first time, issued a 29-year bond, which is another sign of Cencosud’s financial strength. This transaction is aligned with our profitable growth strategy, focused on strengthening our balance sheet and supporting the Company’s long-term development,” commented Andrés Neely, CFO of Cencosud.
From a pricing perspective, Cencosud noted that its seven-year tranche achieved a spread over reference rates at just seventy-five basis points—the lowest among issuers with similar credit ratings in Chile this year—and delivered the lowest yield-to-maturity for such bonds since September 2024. The twenty-nine-year tranche priced at seventy-nine basis points above reference rates represents one of tightest spreads achieved for this tenor in recent years.
Cencosud operates across six countries as one of Latin America’s largest retailers with more than one hundred seventeen thousand employees and nearly fourteen hundred retail stores.
