Parque Arauco Successfully Issues a Bond in the Chilean Capital Market

SANTIAGO, Chile--(BUSINESS WIRE)--Parque Arauco S.A. (PARAUCO.SN) successfully issued a bond in the local Chilean market for a total of UF 3,000,000 (approximately US$130 million).

The bond issuance was placed at a rate of 3.15%, in line with the average interest rate levels paid for the financial debt of Parque Arauco. This issuance corresponds to a single series of BPARC-AF bonds, structured at 21 years with 10 years without amortization and a duration of around 12 years. The credit spread with respect to the reference rate corresponded to 130 basis points, similar to that observed in previous issuances. The bookrunners of the transaction were Link Capital Partners and BCI. Total demand reached 1.5 times the offer.

In alignment with the conservative financial strategy that has characterized Parque Arauco, this issuance strengthens the Company's liquidity and it is part of its financial plan to continue flattening its maturity profile and stabilize amortizations in the future. The Company has maintained an AA local risk rating since before the pandemic, a level that allows it to maintain a competitive position in financial costs. Likewise, this issuance sets balanced duration levels between lease contracts and liabilities (4.8 and 5.8 times, respectively, after the issuance).

Both the high quality of the asset portfolio and the return to pre-pandemic levels in their operational and financial ratios, including a 43% increase in revenue and EBITDA compared to 2021 and the decrease of net financial debt over EBITDA ratio to 5.3 times, contributed to the confidence shown by investors.

Parque Arauco currently has 1,124,500 m² of total GLA in Chile, Peru and Colombia. The company opened its first shopping center in Chile in 1982, entered Peru in 2005 and Colombia in 2008. For more details, visit the company's website: www.parauco.com.