Parque Arauco Issues $200 Million USD Bond

Regional retail giant Parque Arauco S.A. has issued a bond of about $200 million USD that it plans to use for refinancing debt and upcoming investments, according to the Chilean company.

The Santiago-based firm, which operates four large malls and shopping centers in Colombia, issued the bond in two parts, one at 4 million CLF for 10 years at 2.34% and the remaining 1 million CLF amortizable to 7 years at a rate of 1.69%.

Photo: Parque La Colina mall in Bogotá, Colombia. (Photo credit: EEIM)

Colombia became the company’s second foreign market in 2008 following its entrance to Peru three years earlier.

It opened Parque Arboleda mall in the central coffee region city of Pereira in 2010 and launched the flagship, 62,500-square-meter Parque La Colina mall in Bogotá in 2016.

It also maintains two other retail locations in the Andean nation — Parque Caracolí in Bucaramanga and Premium Outlet Arauco in Sopo just north of the capital — as well as two office buildings and a Sonesta brand hotel in Bucaramanga.

Parque Arauco’s Colombian operations accounted for 14.2% of its revenues in the second quarter of 2018, according to the firm.

Across the three South American nations where it operates, the company has 16 malls, seven outlets, and 17 other retail centers.