SMU S.A. announced today the successful placement of bonds in the local Chilean market for a total of UF 1,000,000 (approximately CLP 38 billion or USD 39 million) at an annual interest rate of 3.55%, representing a spread of 115 basis points over benchmark. Demand for the transaction was double the placement amount.

The placement was made using SMU’s Series AW bonds (ticker BCSMU-AW), which have an annual coupon rate of 3.60% and a bullet structure, maturing in 7 years. The proceeds will be used in their entirety to refinance financial liabilities. The transaction was met with strong interest from institutional investors, including pension funds, insurance companies and mutual funds.

SMU’s chief financial officer, Arturo Silva, stated, “This year we have successfully carried out a refinancing strategy for our 2024 and 2025 bond maturities, through which—including today’s transaction—has included a total of UF 5.5 million in bond placements. All of these bonds have maturity dates within our target range, between 2029 and 2034, enabling us to flatten out our maturity profile for the coming years. Consequently, we have a solid financial situation and plenty of flexibility in our cash position in order to meet all of our financial obligations and continue implementing our strategy for 2023-2025.”

SMU’s local credit rating is AA- (stable outlook) with both of its credit rating agencies, Feller Rate and ICR.

BCI Corredor de Bolsa S.A. and Santander Chile acted as placement agents for the transaction.