The company reported that the funds from these issues will be used to refinance liabilities maturing in 2025.

The real estate company Parque Arauco announced a bond issue in the Chilean market for UF 2 million (approximately US$84 million), taking advantage of a window of favorable conditions in the debt market.

This transaction will allow you to refinance your upcoming short-term maturities while maintaining a stable financial position.

In this way, the company carried out the placement of its series of BPARC-AK bonds, corresponding to the last placement charged to Line 803. It was carried out for a total amount of UF 2 million (approximately US$ 84 million) at 21 years with 10 years of grace, with a duration of 12.1 years and at a rate of UF + 3.35%.

The order book was 1.9 times oversubscribed, compressing the spread over the comparable Chilean sovereign bond in UF terms to 80 basis points, one of the lowest for corporate issues with terms greater than 10 years and similar risk classifications.

With this issue, led by Banchile and Itaú Corporate, Parque Arauco continues its work to flatten its amortization profile in the coming years, extending the duration of its debt, and maintains its strategy of actively participating in the Chilean primary market following its last issue almost exactly a year ago.

The company has maintained an AA risk rating since before the pandemic, a level that allows for a competitive position in financial costs and is the result of the execution of a conservative financial plan.

"This successful bond placement, with one of the lowest spreads in recent memory, strengthens the company's creditworthiness and reflects the market's confidence in Parque Arauco, driven by the integrity of its business and the strength of its financial strategy. With this issuance, we refinance this year's maturities, leaving our balance sheet in a good position for the future," says Francisco Moyano, Corporate Administration and Finance Manager.